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Trump Threatens to Reclaim Panama Canal Over ‘Ridiculous’ Fees

President-elect Donald Trump has threatened to demand the return of the Panama Canal to U.S. control, accusing Panama of charging "ridiculous" fees for U.S. ships transiting through the vital waterway.

President-elect Donald Trump has threatened to demand the return of the Panama Canal to U.S. control, accusing Panama of charging “ridiculous” fees for U.S. ships transiting through the vital waterway. Trump’s remarks come as he prepares to assume office in January 2025, highlighting his intent to aggressively address what he perceives as injustices to U.S. economic and security interests.

Trump wrote, “The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S.” He labeled the current toll system a “complete ‘rip-off’ of our Country,” vowing that this would “immediately stop.” His comments also hinted at concerns over potential Chinese influence near the canal, suggesting that the U.S. would not allow it to “fall into the wrong hands.”

This canal, completed by the U.S. in 1914, was handed over to Panama in 1999 under treaties signed by then-President Jimmy Carter. Trump criticized Carter’s decision, calling it “foolish” and emphasizing the canal’s significance as a “VITAL National Asset” for the United States due to its role in America’s economy and national security.

The Panama Canal Authority, which oversees the canal’s operations, has yet to respond officially to Trump’s statements. However, the canal remains a critical artery for global trade, with the U.S. being its largest user, accounting for approximately 75% of the cargo transits each year.

Trump’s threats come amid discussions about the canal’s management and fees, especially following a drought that reduced the canal’s capacity. The canal’s tolls, which can range from as low as $0.50 to upwards of $300,000 per vessel, are based on size, type, and cargo, contributing significantly to Panama’s revenue.

The rhetoric from Trump has sparked debate about U.S. foreign policy and the sanctity of international treaties. Critics argue that such statements could undermine U.S. diplomatic relations and international law, while supporters view it as a strong stance to protect U.S. interests. The situation also raises questions about the future of U.S.-Panama relations and how Trump’s administration might negotiate or enforce changes to canal usage fees or governance.

This development is part of a broader narrative where Trump has historically used threats and negotiations to reshape international agreements in favor of the U.S., exemplified by his past comments on various international trade and security matters.

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