Tensions between the United States and Panama have flared over the Panama Canal, with former President Donald Trump and Panamanian President José Raúl Mulino exchanging heated words over the canal’s ownership and its strategic importance. The escalating rhetoric underscores the canal’s continued role as a vital economic and security asset—and the ongoing friction over its management.
On Saturday, Donald Trump ignited the controversy with a fiery statement on Truth Social, warning that the U.S. could seize control of the canal if Panama fails to address soaring fees and the growing influence of China in its operations.
“The United States has a vested interest in the secure, efficient, and reliable operation of the Panama Canal,” Trump said. “It was not given for the benefit of others but as a token of cooperation. 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, and without question.”
Trump emphasized that the canal’s current management was drifting from its intended purpose, accusing Panama of overcharging U.S. entities and threatening to “burn the bridges” of the historic partnership if changes aren’t made.
In a follow-up post, Trump outlined the strategic significance of the canal to the United States.
“The Panama Canal is a VITAL National Asset for the United States,” he explained. “It plays a critical role in our economy and national security, enabling the rapid deployment of the Navy and drastically reducing shipping times to U.S. ports.”
Over 70% of canal transits are directly tied to U.S. commerce, Trump noted, highlighting that the canal’s construction, overseen by President Theodore Roosevelt more than a century ago, came at a high cost—both financially and in human lives.
Trump also criticized former President Jimmy Carter’s decision to transfer control of the canal to Panama in 1977, calling it a “foolish” move that has since allowed other powers to exert influence. He decried Panama’s current toll system as a “rip-off,” adding, “Our Navy and commerce have been treated in a very unfair and injudicious way.”
Panama’s President José Raúl Mulino responded swiftly and forcefully on Sunday, releasing a video statement that asserted the canal’s sovereignty.
“As President, I want to express clearly that every square meter of the Panama Canal and its adjacent zone belongs to Panama and will continue to do so,” Mulino declared. “The sovereignty and independence of our country are not negotiable.”
He dismissed Trump’s insinuations about Chinese control, stating, “The canal is not under direct or indirect control by China, the European Community, the United States, or any other power.”
On Sunday Panama’s President fired back at Trump in a video statement.
“As President, I want to express clearly that every square meter of the Panama Canal and its adjacent zone belongs to Panama, and will continue to do so,” Mulino said in video statement. “The sovereignty and independence of our country are not negotiable.”
“The Canal is not under direct or indirect control, neither by China, nor by the European Community, nor by the United States, nor by any other power,” Mulino said. “As a Panamanian, I strongly reject any manifestation that distorts this reality.”
“Panama respects other nations and demands respect,” he added.
WATCH:
🇵🇦 Mensaje del Presidente José Raúl Mulino 🇵🇦 pic.twitter.com/DMXU8qAuNT
— José Raúl Mulino (@JoseRaulMulino) December 22, 2024
Later Sunday, President Trump responded: “We’ll see about that!”
The Panama Canal, completed in 1914, was a crowning achievement for the United States and revolutionized global trade. It connected the Atlantic and Pacific Oceans, saving ships weeks of travel around South America. However, its construction came at a great cost—approximately 38,000 workers died due to diseases like malaria and yellow fever.
The canal was under U.S. control until 1999, when Panama officially assumed management as part of the Torrijos-Carter Treaties signed in 1977. Under Panamanian control, the canal has remained a critical waterway for global trade, but its strategic importance has sparked debates about tolls, access, and potential foreign influence.
Trump’s statements reflect broader geopolitical concerns, particularly regarding China’s influence in Latin America. While Panama’s leaders deny Chinese control over the canal, Trump’s warnings align with a growing narrative in Washington that China’s economic ties in the region could threaten U.S. interests.
Trump’s fiery rhetoric also highlights his approach to foreign policy—one rooted in national pride and economic leverage. By threatening to reclaim the canal, Trump positioned himself as a defender of American interests while casting Panama’s leadership as negligent stewards of a shared legacy.
The escalating war of words between Trump and Mulino exposes underlying tensions over sovereignty, economics, and global influence. For Panama, asserting control over the canal is a matter of national pride and independence. For Trump and his supporters, the canal remains a symbol of American ingenuity and sacrifice, one they believe should benefit the U.S. more directly.
As these tensions continue, the Panama Canal’s role as a linchpin of international trade ensures that its management—and any political disputes surrounding it—will remain a hot-button issue. Whether Trump’s threats translate into action or remain political posturing, this latest chapter in U.S.-Panama relations serves as a stark reminder of the canal’s enduring significance on the world stage.
1 Comment
Maybe we can have the same accident that happened to those deep pipelines, but to BENEFIT the U.S..
I’m sure we can find a better way that helps us more than them.
I’ve worked building the Water tunnels in NY with the Sandhogs, using only TOVEX dynamite and I’m SURE my boys can do the job.