U.S. President-elect Donald Trump asserted on Saturday that the Panama Canal imposes “exorbitant prices and tolls” on U.S. Navy and merchant ships, threatening to demand its return if the fees are not reduced. His comments, shared on the Truth Social platform, reignited debates over the canal’s strategic and economic significance.<\/p>\n
“The fees charged by Panama are ludicrous, especially given the extraordinary generosity bestowed on Panama by the United States. This complete ‘theft’ from our country will be stopped immediately,” Trump stated.<\/p>\n
The United States, the canal’s largest customer, accounts for approximately 75% of its annual cargo transit. However, prolonged droughts have disrupted operations, exacerbating supply chain challenges. National Economic Council Director Lael Brainard linked these disruptions to inflationary pressures in a statement last week.<\/p>\n
Despite its financial contributions, the Panama Canal Authority reported a $2.47 billion contribution to Panama’s treasury in fiscal 2024, marking a consecutive annual decline. Deepwater transits also dropped by 21% in 2024 compared to 2023 due to water conservation measures.<\/p>\n
Built by the U.S. and completed in 1914, the 51-mile-long canal was handed over to Panama in 1999 as part of a 1977 treaty signed by President Jimmy Carter\u2014a move Trump called “stupid.”<\/p>\n
Trump raised concerns over the canal “falling into the wrong hands,” implying Chinese influence. China is the second-largest user of the canal, and a Hong Kong-based company manages two of the five ports on its flanks. Panama severed diplomatic ties with Taiwan in 2017 and established relations with China, further solidifying Beijing’s economic footprint in the country.<\/p>\n
“It was not given for the benefit of others, but only as a demonstration of cooperation between us and Panama,” Trump declared, urging Panamanian authorities to respect the canal’s original intent.<\/p>\n
Panama President Jos\u00e9 Ra\u00fal Mulino dismissed Trump’s claims, reaffirming that the Panama Canal and its adjacent areas remain under Panamanian sovereignty. “The sovereignty and independence of our country are non-negotiable,” Mulino asserted.<\/p>\n
He defended the canal’s fee structure as being market-driven and aligned with operational and modernization costs. The canal remains a critical economic engine for Panama, contributing billions annually. Its fees are based on metrics such as tonnage and vessel capacity. For instance, Panamax-class container ships with a capacity of 2,500 TEU pay $172,000 empty and $247,000 full, and Neopanamax vessels with a 12,000 TEU capacity pay between $622,000 and over $1 million, depending on cargo.<\/p>\n
The unit cost per ton is projected to decrease from $11.79 in 2024 to $10.63 in 2025, according to official estimates.<\/p>\n
While Trump advocates for renegotiation, Panama continues to strengthen ties with China. Discussions on a trade agreement, stalled since 2018, may resume in 2025, signaling the deepening influence of Beijing in the region.<\/p>\n
However, Mulino rejected allegations of foreign control, stating, “Neither China, nor the European Community, nor the United States, nor any other power has any direct or indirect control over the canal.”<\/p>\n
During his campaign, Mulino emphasized cooperation with the U.S. on migration issues, including closing the Dari\u00e9n Corridor\u2014a key transit point for migrants heading to the U.S.<\/p>\n","protected":false},"excerpt":{"rendered":"
U.S. President-elect Donald Trump asserted on Saturday that the Panama Canal imposes “exorbitant prices and tolls” on U.S. Navy and merchant ships, threatening to demand its return if the fees are not reduced. His comments, shared on the Truth Social platform, reignited debates over the canal’s strategic and economic significance. “The fees charged by Panama […]<\/p>\n","protected":false},"author":1,"featured_media":6854,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[175],"tags":[4365,529,319,503,4366,2822,4364,4367],"class_list":["post-6853","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-diplomacy","tag-annexation","tag-china","tag-donald-trump","tag-headline","tag-jose-raul-mulino","tag-panama","tag-panama-canal","tag-sovereignty"],"yoast_head":"\n