Donald Trump Warns Panama Over Canal Control Amid Rising Chinese Influence

The Panama Canal, an engineering marvel connecting the Atlantic and Pacific Oceans, has once again become a geopolitical flashpoint. President-elect Donald Trump recently expressed concerns about China’s growing influence in Panama, coupled with what he deemed excessive tariffs levied by the Panamanian government for canal usage. Trump’s remarks have reignited debates over the canal’s management and its critical role in global trade.

A Strong Warning on Social Media

Using his social media platform, Truth Social, Trump warned,

“We would and will NEVER let [the Panama Canal] fall into the wrong hands!”

He reminded the Panamanian government that the canal was constructed over a century ago by the United States, underscoring its historical significance. Trump’s statements reflect growing US unease about China’s economic maneuvers in strategically vital regions.

History of the Panama Canal

The Panama Canal is a man-made waterway that significantly reduces shipping time and costs by providing a shortcut between the Atlantic and Pacific Oceans. Before its construction, ships had to endure the perilous and lengthy journey around Cape Horn or the Strait of Magellan at the southern tip of South America.

Key Historical Milestones:

• Early 20th Century: After gaining independence from Colombia in 1903, Panama signed a treaty with the US to construct the canal.
• 1904–1914: Over a decade of relentless work culminated in the canal’s completion, with the SS Ancon becoming the first ship to traverse it.
• 1977 Torrijos-Carter Treaty: This agreement marked the gradual transfer of the canal’s control to Panama, which assumed full authority in 1999.

Today, the canal is a linchpin of global trade, facilitating the passage of 6% of worldwide maritime commerce.

Trump vs. Panamanian President Jose Raul Mulino

President-elect Trump has accused Panama of imposing “ridiculous” fees for canal usage, a move he views as exploitative given America’s historic role in its construction. He suggested the possibility of reclaiming control of the canal if these practices continue, saying:

“If the principles, both moral and legal, of this magnanimous gesture are not followed, we will demand that the Panama Canal be returned to us, in full, and without question.”

In response, Panama’s President Jose Raul Mulino delivered a firm rebuttal via social media. He declared:

“Every square meter of the Panama Canal and its adjacent areas belongs to Panama and will continue belonging to Panama.”

Mulino emphasized that the canal operates independently and is not influenced by external powers like China, the European Union, or the US.

China’s Growing Influence

Trump’s concerns stem largely from China’s increasing geopolitical clout. Beijing has been expanding its maritime and infrastructure investments globally, raising alarms in Washington. Notably, China now boasts the world’s largest navy, with 370 ships and submarines, surpassing the US fleet of 290 vessels.

While Panama denies any Chinese control over the canal, China’s involvement in nearby infrastructure projects has heightened US apprehensions. For Washington, maintaining the canal’s neutrality and accessibility is vital to securing global trade routes and protecting democratic values.

Strategic and Economic Significance

The Panama Canal is one of the most crucial waterways globally. Its efficient operation is pivotal for trade between Asia, the Americas, and Europe. For the United States, ensuring the canal remains free from external influence is not only a matter of economic importance but also of national security.

What Lies Ahead?

As Panama stands firm on its sovereignty, Trump’s comments signal a potential shift in US foreign policy toward a more assertive stance on strategic global assets. Whether this rhetoric translates into action under Trump’s presidency remains to be seen. However, the tug-of-war over the canal underscores its enduring significance in the global power struggle.

The Panama Canal, once a symbol of American engineering prowess, now stands at the heart of 21st-century geopolitics—a reminder that infrastructure often serves as the battleground for the world’s most powerful nations.