In a move that has left geopolitical analysts and late-night comedians alike scratching their heads, President-elect Donald Trump has set his sights on reclaiming the Panama Canal. Yes, you heard that right—the 50-mile stretch of waterway that the United States ceremoniously handed over to Panama in 1999 is now, apparently, back on the real estate market.
During a recent rally, Trump lamented, ‘We’re being ripped off at the Panama Canal like we’re being ripped off everywhere else.’ He went on to describe the 1977 decision to cede control as ‘foolish’ and criticized the ‘ridiculous’ fees imposed on American vessels. ‘This complete rip-off of our country will immediately stop,’ he declared, suggesting that if Panama doesn’t adjust its pricing, the U.S. might just take the canal back.
Panama’s President José Raúl Mulino responded with a firm ‘no, gracias,’ emphasizing that ‘every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue belonging [to Panama].’
For those who might have missed the memo, the Panama Canal was under U.S. control for most of the 20th century. It was a symbol of American engineering prowess and, let’s be honest, a not-so-subtle flex of imperial muscle. But in 1977, President Jimmy Carter signed the Torrijos–Carter Treaties, agreeing to transfer control of the canal to Panama by the end of 1999. The handover was completed on schedule, and since then, Panama has been running the show quite efficiently.
Trump’s sudden interest in the canal seems to be part of a broader strategy to ‘Make America 19th Century Again.’ In the same breath, he’s floated the idea of purchasing Greenland—a proposal that was met with a polite but firm rejection from Denmark. One can only imagine the real estate pitch: ‘Comes with icebergs, strategic location, and a free Viking helmet with every purchase!’
But back to the canal. Trump’s grievances appear to center on the toll fees that ships pay to transit the waterway. These fees are determined by the Panama Canal Authority and are based on vessel size, type, and cargo. While it’s true that the U.S. is a major user of the canal, it’s also true that the fees apply uniformly to all nations. In other words, it’s not personal; it’s just business.
Moreover, Trump’s insinuation that the canal is ‘falling into the wrong hands’—a thinly veiled reference to China’s growing influence in global trade—doesn’t hold much water. While Chinese companies are significant users of the canal, the waterway remains firmly under Panamanian control. The notion that Panama would hand over such a critical asset to another foreign power is, to put it mildly, far-fetched.
It’s worth noting that the U.S. retains the right to defend the canal’s neutrality under the terms of the Torrijos–Carter Treaties. However, this doesn’t equate to a carte blanche for reoccupation. International law tends to frown upon superpowers unilaterally seizing foreign infrastructure—it’s generally considered bad manners.
So, what’s the endgame here? Is this a genuine policy proposal or just another example of Trump’s penchant for headline-grabbing proclamations? Perhaps it’s a bit of both. Reasserting control over the Panama Canal would certainly be a bold move, but it’s fraught with legal, diplomatic, and logistical challenges.
In the meantime, Panama seems unfazed by the bluster. The canal continues to operate smoothly, facilitating about 5% of global maritime trade. Ships transit, tolls are collected, and the world keeps spinning—regardless of the latest musings from Mar-a-Lago.
As we await the next chapter in this unfolding saga, one can’t help but wonder: What’s next on the agenda? A campaign to bring back the British Empire? A proposal to annex the moon? With this administration, it seems no idea is too outlandish. Stay tuned, folks. It’s going to be an interesting four years.
