Trump Threatens to Reclaim Panama Canal Citing High Fees

by Archynetys World Desk

Donald Trump Threatens to Reclaim Control Over the Panama Canal

US President-elect Donald Trump has made a dramatic claim, asserting that he will reassert US control over the Panama Canal. Trump accused Panama of imposing excessive usage fees, which he believes unfairly target American interests.

At an event in Arizona, Trump addressed his supporters, saying, “Has anyone ever heard of the Panama Canal? Because we’re being ripped off at the Panama Canal like we’re being ripped off everywhere else.”

In a truth social post, Trump warned that the canal would not fall into “wrong hands,” particularly citing concerns over Chinese influence.

US President-elect Donald Trump speaking in Arizona on Sunday at Turning Point USA’s AmericaFest at the Phoenix Convention Center. Photograph: Rebecca Noble/Getty Images

The Accusations and Rhetoric

Trump’s comments echoed a broader theme of his administration’s aggressive stance toward perceived unfair treatment by international partners. He maintains that the fees charged by Panama are “ridiculous and highly unfair.”

He went as far as to suggest that if Panama did not treat the United States fairly, “we will demand that the Panama Canal be returned to us, in full, quickly and without question.”

International Reactions

Panamanian President Jose Raul Mulino strongly responded to Trump’s statements, reaffirming Panama’s sovereignty over the canal. “Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue belonging so,” Mulino said in a recorded statement, published on the platform X.

Several Panamanian politicians also took to social media to criticize Trump’s comments and expressed concern for their nation’s independence. Grace Hernandez, a deputy from the opposition MOCA party, called for a firm defense of Panama’s autonomy.

The History and Context

The Panama Canal, a crucial link between the Atlantic and Pacific Oceans, plays a vital role in global trade. The United States constructed the canal in the early 20th century but gradually transferred control to Panama. The 1977 Torrijos-Carter Treaties set the stage for this transfer, culminating in full Panamanian control in 1999.

The waterway handles approximately 14,000 ships annually, accounting for 2.5% of global seaborne trade. It is critical for the US import and export of goods, particularly commodities like automobiles, commercial goods from Asia, and liquefied natural gas.

Managing ports at the canal entrances has been the responsibility of a subsidiary of Hong Kong-based CK Hutchison Holdings, but China has no direct control or administration of the waterway.

The Potential Challenges

It remains unclear how Trump would seek to reclaim control over the canal, given the legal and international complexities involved. Under international law, such an endeavor would be highly problematic.

Broader Implications

Trump’s statements reflect a pattern of aggressive foreign policy rhetoric. His comments about turning Canada into a US state and expressing an interest in purchasing Greenland illustrate his broader perspective on territorial expansion and renegotiation of international agreements.

However, these statements are subject to political and legal considerations. The US Treasury department adviser, Stephen Miran, who will chair Trump’s council of economic advisers, will likely play a role in shaping economic policies, including those related to international trade.

Conclusion

Trump’s assertion over the Panama Canal underscores a shift in US foreign policy under his leadership. While the legal and diplomatic challenges to reclaiming the canal are significant, they reflect a broader trend of renegotiating international partnerships and asserting American interests.

As Trump prepares to take office, his approach to international relations will be closely watched, given his history of provocative statements and actions.

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