Trump Threatens Panama Canal Takeover, Sparks Diplomatic Row

The Panama Canal, a vital artery of global trade, has become the center of an unexpected controversy. President-elect Donald Trump has threatened to retake control of this strategic waterway, accusing Panama of charging “exorbitant fees” to American vessels.

Trump’s statements, made during a speech in Arizona and on social media, have sent ripples through diplomatic circles. He warned that if Panama doesn’t adhere to certain principles, the U.S. might demand the canal’s return “in full, quickly and without question.”

This unusual claim by a U.S. leader to reclaim sovereign territory has raised eyebrows internationally. The Panama Canal, transferred to Panamanian control in 1999, handles about 6% of global maritime trade. Approximately 40% of U.S. container traffic relies on this crucial passage.

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Panamanian President José Raúl Mulino swiftly rebuffed Trump’s assertions. He emphasized that “every square meter” of the canal belongs to Panama and that its sovereignty is non-negotiable. Mulino also defended the canal’s fee structure, stating that rates are set based on operational costs and market dynamics.

Trump’s concerns extend beyond fees. He hinted at growing Chinese influence around the canal, stating it must not fall into the “wrong hands.” While China doesn’t directly control the canal, a Hong Kong-based company operates two ports at its entrances, fueling strategic concerns.

The controversy highlights the canal’s enduring importance in global commerce and geopolitics. As the world watches, the future of this critical waterway hangs in the balance, potentially shaping regional dynamics for years to come.

Trump Threatens Panama Canal Takeover, Sparks Diplomatic Row

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