Trump Vows to Regain U.S. Control Over Panama Canal Sparks Global Concerns"</strong></p>”>Panama Canal
In a speech this Sunday, former President Donald Trump asserted that his administration would strive to retake control over the Panama Canal. He remarked that the U.S.’s handover of control to Panama in 1999 was a mistake, likening it to a "stupid giveaway" that forces ships to pay a "stupid fee" to traverse the vital waterway connecting the Atlantic and Pacific Oceans.
Panama’s conservative President Joséraul Mulino, elected in May, swiftly rejected Trump’s proposal, denouncing it as an encroachment on his country’s sovereignty. The canal, a critical global shipping route, has been under Panama’s control since December 31, 1999, following its transfer from U.S. administration, which built the canal from 1904 to 1914 after a failed French attempt.
The return of the canal was among the agreements signed in 1977 by then-U.S. President Jimmy Carter and Panama’s former leader Omar Torrijos. "If the moral and legal principles of that generous donation are not respected, we will demand that the Panama Canal be returned to the United States in full, quickly and without question," Trump stated.
Trump emphasized, "I will not accept that," adding, "So, Panama officials, please act accordingly." However, he offered no details on how the U.S. would regain control of the canal.
Soon after Trump’s speech, Mulino released a video statement affirming, "Every square meter of the canal belongs to Panama, and will continue to do so." He addressed Trump’s complaints about rising shipping fees, stating that they are determined by specialists considering operational costs, demand, and supply factors, not arbitrarily.
"Tariffs are not set capriciously," Mulino explained, noting that Panama has expanded the canal over the years to increase maritime traffic "on its own initiative" and that fee increases help fund these improvements.
"Panamanians may have different opinions on many issues," Mulino said. "But when it comes to our canal and our sovereignty, we will all stand united under the Panamanian flag."
In response, Trump posted on his social media platform, "We’ll see about that!" and shared an image of the American flag flying in the canal zone, with the caption "Welcome to the United States Canal!"
The canal relies on reservoirs to operate its locks, and the severe drought in Central America in 2023 significantly reduced the number of ships that could transit the waterway. Consequently, administrators increased fees to make up for the lost revenue from reduced reservations.
As weather conditions returned to normal, canal traffic has since resumed. However, prices are expected to rise again next year.
Trump also told his supporters that his "dream team" administration would ensure economic growth, reinforcement of U.S. borders, and swift resolutions in conflicts in the Middle East and Ukraine.
