Things are getting heated.
After President-elect Donald Trump suggested that his administration could seek to regain control of the Panama Canal, Panama’s President, José Raúl Mulino, quickly responded, asserting the country’s sovereignty over the waterway. Trump had argued that the U.S. “foolishly gave away” the canal and was now “being ripped off” by rising fees for ships crossing it. In a video response, Mulino made it clear that “every square meter of the canal belongs to Panama and will continue to belong” to the country, emphasizing that Panama’s control is non-negotiable.
Without directly naming Trump, Mulino addressed the former president’s concerns about the canal’s increasing tolls, explaining that these rates are determined by expert analysis, considering both operational costs and market factors. He further pointed out that Panama has invested in expanding the canal over the years to accommodate growing shipping traffic, with fee increases helping to fund these improvements.
Mulino also underscored that the issue of the canal is one that unites all Panamanians, regardless of political differences. “When it comes to our canal, and our sovereignty,” he declared, “we will all unite under our Panamanian flag.”
In response, Trump took to social media, tweeting, “We’ll see about that!” He also posted an image of the U.S. flag planted in the canal zone, captioned, “Welcome to the United States Canal.” His remarks followed a Truth Social post earlier in the weekend, where he had criticized the canal’s tolls, which can range from a few thousand to as much as $500,000 depending on the size and cargo of the ship.
The Panama Canal, a vital international trade route, was constructed by the United States in the early 20th century but was handed over to Panama in 1999 under the terms of the 1977 Carter-Torrijos Treaty. The canal’s operation depends heavily on water from local reservoirs, and in 2023, a severe drought in Central America forced Panama to limit the number of daily transits. Although conditions have improved, experts expect continued toll increases to help cover the cost of maintaining and upgrading the canal infrastructure.
For many Republicans, Trump’s comments may resonate with a sense of American nationalism and the desire to revisit past agreements that they feel have disadvantaged the U.S. However, any action to reclaim control of the canal would likely face strong opposition from Panama, as well as significant diplomatic and legal challenges. The canal’s strategic importance and the 1999 treaty’s enduring legacy make it a complex issue that is unlikely to be resolved through simple rhetoric.