Trump Threatens to Reclaim Panama Canal Over Transit Fees

The president-elect’s remarks followed a series of Truth Social posts in which he claimed the waterway was not intended for Panama to charge the United States "exorbitant prices." During a speech at the AmericaFest conference in Arizona, Trump doubled down on the sentiment, suggesting the canal had fallen into the wrong hands and receiving an "Take it back!" shout of support from an audience member to which he replied, "That's a good idea."

Critics were quick to denounce the stance. Rep. Ritchie Torres characterized the threat as an open advocacy for imperialism, noting that the president-elect appeared to disregard Panama’s status as an independent nation. Panamanian officials echoed this concern, with opposition deputy Grace Hernandez stating that the government has a duty to defend its autonomy against such rhetoric. The timing of the comments proved particularly incendiary, arriving one day after the 35th anniversary of the 1989 U.S. invasion of Panama, an operation that resulted in significant civilian casualties.

Despite Trump’s claims, there is no evidence that China controls the canal. While a subsidiary of Hong Kong-based CK Hutchison Holdings manages ports on either side of the waterway, the canal itself remains under Panamanian authority. Industry analysts attribute recent rate hikes not to targeted discrimination, but to lingering environmental challenges. Severe droughts in 2023 forced administrators to limit daily transit slots, necessitating fee increases to maintain operations as water levels in the canal’s reservoirs fluctuated.