US President-elect Trump Criticizes Panama Over Canal Fees, Warns Against Chinese Influence

In a fiery statement on Sunday, US President-elect Donald Trump demanded a reevaluation of Panama’s management of the Panama Canal, accusing the Central American nation of imposing “exorbitant prices” on the United States and threatening to reclaim control of the vital waterway. The President-elect labeled the canal a “critical national asset” for US commerce and security, warning against potential Chinese influence in the region.

Trump Calls Panama Canal a Vital Asset

“The Panama Canal is considered a VITAL national asset for the United States due to its critical role in America’s economy and national security,” Trump asserted. He emphasized the canal’s significance for facilitating rapid naval deployment between the Atlantic and Pacific Oceans and drastically reducing shipping times for goods destined for US ports.

Highlighting the canal’s usage, Trump stated that the US accounts for over 70% of all canal traffic. “A secure Panama Canal is crucial for US commerce and our Navy’s strategic operations,” he said.

Historical Reference and Criticism of Past Decisions

Trump’s remarks included a scathing critique of former President Jimmy Carter, whose administration facilitated the 1977 Panama Canal Treaties, transferring control of the canal to Panama by the end of 1999.

“Considered one of the Wonders of the Modern World, the Panama Canal was built at an immense cost to the United States in both lives and treasure,” Trump stated. He pointed out that approximately 38,000 American workers lost their lives to disease during the canal’s construction, which began in 1904 under President Theodore Roosevelt.

“When President Jimmy Carter foolishly gave it away, it was for Panama to manage—not for China or anyone else to gain control or influence,” he added, referring to concerns about Chinese investment in the region.

Panama’s Fees Under Fire

Trump reserved strong words for Panama’s toll rates, accusing the country of unfairly exploiting the canal’s strategic importance to overcharge American ships. “The fees being charged by Panama are ridiculous, especially given the extraordinary generosity the US has bestowed upon them. This complete ‘rip-off’ of our country will immediately stop,” he declared.

The President-elect also criticized Panama for what he described as “injurious treatment” of the US Navy and American businesses. “Our Navy and commerce have been treated in a very unfair and injudicious way,” Trump said, signaling his administration’s intent to challenge Panama’s pricing practices.

Warning Against Chinese Influence

Trump expressed concerns over the possibility of Chinese influence on the canal’s operations, stating, “We would and will NEVER let the Panama Canal fall into the wrong hands!” He underscored the importance of keeping the canal free from foreign control or misuse, reiterating that the original agreement was based on mutual cooperation between the US and Panama.

Demand for Action

Concluding his statement, Trump issued a clear warning to Panamanian authorities: comply with the original moral and legal principles of the canal transfer or face demands for its return.

“If the principles of this magnanimous gesture are not followed, then we will demand that the Panama Canal be returned to us, in full, and without question. To the officials of Panama, please be guided accordingly,” Trump said.

Background on the Panama Canal

The Panama Canal, completed in 1914, is widely regarded as one of the greatest engineering achievements of the 20th century. It represents a pivotal chapter in US foreign policy and technological prowess, enabling faster maritime trade between the east and west coasts of the Americas.

Initially under US control, the canal became a point of contention in US-Panamanian relations, eventually leading to the 1977 treaties. While the canal’s transfer was celebrated as a step toward Panamanian sovereignty, Trump’s remarks indicate lingering disputes over its management and economic impact on the United States.

Potential Implications

Trump’s comments may signal a shift in US policy toward Panama and broader geopolitical considerations in Latin America. Analysts believe his administration could push for renegotiations or measures to ensure the canal’s operations align with American interests.

Trump’s statement also underscores the rising tensions surrounding Chinese investments in global infrastructure, particularly in regions of strategic importance to the US.

As Trump prepares to take office, his remarks on the Panama Canal hint at a more assertive approach to securing American economic and strategic interests abroad. The response from Panamanian officials remains to be seen, but Trump’s stance has already reignited discussions about the canal’s enduring significance to US foreign policy.