Former U.S. President and current President-elect Donald Trump has set his sights on the Panama Canal, accusing the Central American country of unfairly charging American ships “ridiculous” fees to use the historic waterway. Speaking on his social media platform, Truth Social, Trump warned that if Panama doesn’t reduce the costs, the U.S. might demand control of the canal be handed back.
Trump criticized the fees, which range from $0.50 to a staggering $300,000 depending on the ship and its cargo, calling them a “complete rip-off.” The Panama Canal, built under U.S. leadership in 1914, remains a crucial trade route, handling about 5% of global shipping. Over 70% of the goods passing through the canal are tied to the U.S., making it a vital artery for American trade and security.
In 1977, then-U.S. President Jimmy Carter signed a treaty to hand over full control of the canal to Panama in 1999. Trump labeled this decision “foolish,” arguing it was meant only for Panama to manage—not to exploit or allow other countries, like China, to gain influence near such a strategic location.
Trump accused Panama of taking advantage of U.S. generosity by imposing steep fees on American ships, including naval vessels. He stated that the canal was transferred under the understanding of fair management, but Panama’s current actions violate those principles. “We gave it to Panama as a magnanimous gesture,” he said, “not for them to abuse it or charge us exorbitant rates.”
The President-elect also raised concerns about Chinese companies operating port facilities near the canal, hinting at potential security risks. He vowed that the U.S. would not allow the canal to fall into “the wrong hands.”
This isn’t the first time the canal has been a flashpoint between Panama and the U.S. Back in 1989, the U.S. invaded Panama to remove General Manuel Noriega, the country’s de facto leader, citing drug trafficking charges. Though the invasion was brief, it was highly controversial, with thousands of civilians reportedly killed or injured.
Trump’s remarks could signal a looming political and trade conflict, as the canal remains a linchpin in global shipping. For now, the world is watching to see if Panama will lower its fees—or if the U.S. will escalate its demands for control of the iconic waterway.
