Trump and the Panama Canal

Ava Cai

December 27, 2024

The Panama Canal is an artificial waterway that cuts through Central America, connecting the Atlantic Ocean with the Pacific Ocean. This canal was built by the U.S. and revolutionized shipping as ships no longer had to navigate around the tip of South America, which cut costs and increased efficiency. Following his 2024 re-election, President-elect Donald Trump alludes to potential American territorial expansion and has made the Panama Canal a goal of acquisition. 

Trump has broadcasted his plans to take over the Panama Canal for national security purposes and even accused Panama of having Chinese soldiers guard this critical shipping route. Panama answered Mr. Trump’s claim by confirming that no Chinese soldiers are based around the region and that “anyone in the world is free to visit the canal.” Although Trump’s blame is unbacked, CK Hutchison Holdings, a corporation in Hong Kong, does command two of Panama’s five biggest ports and invests substantially in the country. 

Although the roots of Trump’s new focus on the Panama Canal are unknown, officials suggest that Republicans have a history of protesting against Panamanian control of the canal. For example, both former presidents Ronal Reagan and Jimmy Carter advocated fervently for the canal to return into the hands of the United States. 

From 1904 to 1914, the U.S. government was in charge of constructing the Panama Canal. The construction cost $375 million for the U.S. as well as thousands of laborers who died in the building process. Following completion, anti-American riots raged in 1964, which resulted in two treaties signed under President Jimmy Carter and Panamanian leader Omar Torrijos (the Neutrality Treaty and the Panama Canal Treaty) and the eventual Panamanian takeover of the canal in 1999. Since then, the canal has been under the control of the Panama Canal Authority and serves as a symbol of national pride for the country. Current President José Raúl Mulino responded to President-elect Trump, saying, “As President, I want to express precisely that every square meter of the Panama Canal and its adjacent area belong to PANAMA, and will continue to be. The sovereignty and independence of our country are not negotiable.” 

Although Mr. Trump has made his request well known, it is improbable that anything can be done in his favor given the neutrality agreements established in previous presidencies. Nevertheless, given the stable relationship between the U.S. and Panama, officials suggest that President Mulino will likely cooperate with Mr. Trump to manage illegal immigration and other issues that are concerning the U.S.