Donald Trump Calls for Renegotiating Panama Canal Terms, Threatens U.S. Reclamation

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Former President Donald Trump has called for renegotiating of Panama canal terms suggesting the United States could reclaim control of the Panama Canal.

Trump made this known while speaking to a crowd in Arizona at AmericaFest, an annual conservative event hosted by Turning Point USA, Trump criticized Panama for what he described as “excessive fees” charged to ships using the canal, a critical waterway connecting the Pacific and Atlantic Oceans.

The Panama Canal, a marvel of engineering and vital trade artery, facilitates the transit of approximately 14,000 ships annually, accounting for 2.5% of global seaborne trade.

Built largely by the United States in the early 20th century, the canal was administered by the U.S. for decades before a series of treaties signed in 1977 initiated its gradual transfer to Panamanian control. This process culminated in 1999, when the U.S. handed over full authority to Panama following a period of joint administration.

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Trump’s recent comments, however, suggest he views the canal’s current arrangement as detrimental to U.S. interests. He accused Panama of charging “ridiculous” and “highly unfair” fees, arguing that such practices violate the principles of the canal’s transfer.

“The fees being charged by Panama are ridiculous, highly unfair,” Trump declared. “If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, quickly and without question.”

Trump also warned of potential Chinese influence over the canal, despite there being no evidence of direct Chinese control. His concerns likely stem from the presence of a subsidiary of Hong Kong-based CK Hutchison Holdings, which operates two ports at the canal’s Caribbean and Pacific entrances.

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Trump implied that these operations could lead to greater Chinese involvement in the waterway, further justifying his call for the U.S. to reassert control. “I will not let the canal fall into the wrong hands,” he proclaimed, echoing his broader narrative of protecting U.S. interests from perceived foreign threats.

Reacting to Trump comment, Grace Hernandez, a deputy from Panama’s opposition MOCA party, took to social media to call for a firm response. “The government has the duty to defend our autonomy as an independent country,” she wrote. “Diplomacy demands steadfastness in the face of regrettable statements.”

The Panamanian embassy in Washington has not officially commented on Trump’s statements, but the broader diplomatic community is undoubtedly paying close attention. Trump’s rhetoric, while not new, raises concerns about potential shifts in U.S. foreign policy should he return to the presidency.

Trump’s comments about the Panama Canal are not isolated. During his first term, he expressed interest in purchasing Greenland, a Danish territory, only to be rebuffed by Denmark.

In recent weeks, he has also floated the idea of turning Canada into a U.S. state, although it remains unclear how serious he is about such proposals. These remarks highlight a recurring theme in Trump’s rhetoric: a willingness to challenge international norms and agreements to assert U.S. dominance.

REUTERS

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