Can Trump Take the Panama Canal Back?
The Panama Canal, one of the most strategically significant waterways in the world, has once again become a focal point of international controversy. Former President Donald Trump has raised alarms about Panama’s increasing alignment with China, accusing the Panamanian government of violating the 1977 Canal Treaty. Trump’s stance has reignited debates over U.S. involvement in the canal, its economic contributions to Panama, and the geopolitical risks posed by Chinese influence. As Trump declared on Truth Social, “We’re being ripped off at the Panama Canal like we’re being ripped off everywhere else.”
A Brief History of the Panama Canal The Panama Canal, often considered one of the greatest engineering marvels in history, was constructed by the United States between 1904 and 1914. At a cost of $375 million (equivalent to over $15 billion today), it was the most expensive construction project of its time. Thousands of workers lost their lives during its construction, battling harsh working conditions and tropical diseases.
The canal revolutionized global trade by creating a direct route between the Atlantic and Pacific Oceans, saving ships thousands of miles and weeks of travel time. However, control of the canal became a point of contention between the United States and Panama throughout the 20th century. In 1977, President Jimmy Carter signed the Torrijos-Carter Treaties, which guaranteed the canal’s transfer to Panama by December 31, 1999. These treaties also promised the permanent neutrality of the canal and gave the U.S. the right to defend it against any threat.
During a speech at AmericaFest, Trump emphasized the significance of these treaties, stating, “We will never allow the Panama Canal to fall into the wrong hands.”
Economic Impact of the Panama Canal on Panama The Panama Canal remains the cornerstone of Panama’s economy, contributing approximately 7.7% to the country’s GDP. In 2023 alone, it generated $2.55 billion in revenue, representing 23.6% of the Panamanian government’s annual income. Over the years, the canal has contributed a total of $25.76 billion in direct payments to Panama’s National Treasury.
Beyond its financial contributions, the canal supports nearly 55,000 jobs, accounting for 2.9% of total employment in the country. Its indirect impact on logistics, trade, and related industries makes it a vital economic engine for Panama.
In a statement celebrating the canal’s 25th anniversary under Panamanian control, President José Raúl Mulino highlighted its importance: “The Panama Canal continues to be a profitable public company, generating substantial earnings that are ultimately transferred to the National Government for the sake of our nation.”
Panama’s Investment in the Canal Since gaining control in 1999, Panama has invested billions into modernizing and expanding the canal. The most significant investment was the $5.25 billion expansion project, completed in 2016, which allowed larger Neopanamax vessels to pass through the waterway. This upgrade doubled the canal’s capacity and significantly boosted maritime trade efficiency.
However, Panama now faces challenges, including water scarcity, operational costs, and competition from alternative routes. The ongoing water crisis has forced authorities to reduce daily transits and increase toll fees, a decision that has sparked criticism from shipping companies and political figures like Trump.
The Growing Chinese Influence Trump’s primary concern centers around China’s growing economic and strategic influence in Panama. In 1997, Panama outsourced the management of its two entry ports—Cristóbal on the Atlantic and Balboa on the Pacific—to Hutchison Ports PPC, a Hong Kong-based company. At the time, Congress determined the deal posed no threat to U.S. interests because Hong Kong was still under British control.
However, after Hong Kong returned to Chinese rule in 1997, concerns about Beijing’s influence grew. By 2022, Chinese investments in Panama exceeded $2.5 billion, and over 40 Chinese companies now operate in the Canal Zone. Trump has argued that these partnerships violate the Torrijos-Carter Treaties, which required Panama to ensure neutrality and nondiscriminatory access to the canal.
Trump warned at AmericaFest: “With Chinese interests controlling the entry ports on both sides of the canal, disabling the waterway would be child’s play for our adversaries in Beijing—and disastrous for America’s economy and safety.”
Trump’s Warning and the Treaty Debate Trump has argued that Panama’s concessions to Chinese companies represent a breach of the 1977 treaties. He claims that rising toll fees disproportionately target American shipping companies, undermining the canal’s neutrality.
In a fiery Truth Social post, Trump declared, “If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to the United States of America, in full, quickly, and without question.”
While legal experts debate whether the U.S. has the authority to reclaim control under the treaties, Trump’s supporters believe the national security provisions give him the moral and legal justification to act.
What the Experts Say Most international law experts argue that the treaties do not explicitly grant the U.S. the right to retake the canal. They maintain that Panama remains the legitimate operator of the waterway and that China’s role, while concerning, does not violate the treaties.
However, Trump’s supporters argue that Trump’s approach is necessary to counter China’s growing influence and prevent potential disruptions to global trade.
Trump’s stance positions him as a defender of American economic and security interests. His supporters see him as someone willing to challenge both Panama and China to ensure that the canal remains neutral and accessible to all nations.
Historically, the U.S. has not hesitated to intervene in Panama when its interests were threatened. In 1989, American forces invaded Panama to remove dictator Manuel Noriega, who had jeopardized U.S. security and the canal’s neutrality.
ACZ Editor: Trump’s style is to set a goal and then set an intolerable negotiating position. Panama’s negotiating position at this point is already intolerable, i.e. China in key positions of control. Trump may not end up owning the canal, but China will almost certainly be kicked out.
After all, the Canal was a gift, an incredibly generous one given that it has contributed over $25 Billion to the Panamanian economy. They had one job – to keep it out of enemy hands. As Trump said, “We’ll see about that.”
D.O. Trump’s style is funny. Braggadocio, personal attacks, overinflated goals, funny stuff. Apparently, his goal, for some strange reason, is to kick China out from port management in Panama. He started his act on Christmas, not President, but making those moves, attempting to beat out Jesus for top billing that day in the press as he boldly stated: ““Merry Christmas to all, including to the wonderful soldiers of China, who are lovingly, but illegally, operating the Panama Canal.” This is a big fat lie. Merry Christmas from the Don. Especially a merry one for the people of Panama and China.
The President of Panama responded: “There is absolutely no Chinese interference or participation in anything that has to do with the Panama Canal,” and the next version of the Trump reality show was on social media real time.
Not to say we are not worried about China’s growing influence over the world’s ports, they are investing heavily there and expect returns by way of prioritization for their goods. Pretty much a no brainer given they are the world’s manufacturer to want to own or control more of the value chain. But cause for concern, is global, not necessarily a singular focus on Panama.
After all, Trump is about to take Greenland to open the Northwest passage and then we won’t even need the Panama Canal. Mission accomplished.
A spokesman for the Trump team, said in a formal statement that “Chinese control of the Panama Canal absolutely poses a national security threat to the U.S.” As does Chinese control of Chinese restaurants in America son. Imagine if they stopped serving egg rolls……where would we be? What’s the point? They operate ports on either side of the canal, not even the canal, not even ownership. Could they take over the canal? Sure. As easy as we can take it back. And we don’t even need it for military ships. Carriers don’t fit. They also operated ports in America, does Trump not know that?
The ports have been operated, not owned, by a Hong Kong corporation, owned by Hong Kong billionaires, publicly traded, but not by the Chinese government. This company owns or manages over 200 ports in 100 countries, so if that is Mr. Trump’s goal, he’s gonna need a bigger boat. Over 80% of all US port cranes are Chinese, with Chinese software. They also have $200M invested in US port operations owning shares in five of our ports. So, what is Trump doing about these risks. Shouldn’t we act at home before we act in Panama? Remember, MAGA? US first, world second?
Nope, Trump is not looking at the big picture of China global actions. Or even an America First policy. Instead, he’s focusing on Panama, a country desperately trying to curry our favor, and China – the great evil. Or should I say he’s looking at 1% of the Chinese international ports so not exactly going to ruin China’s Day. It’s a pretty safe place to scream and shout, dangle that shiny bobble to the press and to his people to distract from the 1/6 report coming out and his sentencing on Friday where he will claim victory for being a felon who does not get punished, just recognized. In the end, he probably will not get the canal, he will not go to jail, but he may get Panama to outsource the ports to someone else. Not sure, but if he does, perhaps the best thing out of this is a model for the other 99 ports China owns or operates off-short to China. But why the show?
Brian Hughes, a spokesman for the Trump-Vance transition team, said in a statement that “Chinese control of the Panama Canal absolutely poses a national security threat to the U.S.” Like a threat that must be dealt with or else? Be clear when you issue a threat Brian. Draw the line.
To whip up his base, Trump said that 38,000 Americans died building it; he lies. Try hundreds of US citizens and thousands of people Central America, the Caribbean or Colombia. Perhaps he needs a teleprompter to be able to tell the truth. FYI: My uncle married a “Chiquita girl” there. He was in the service, she was working, they married in Panama and ended up in NJ. Another uncle died there going down on his sub in 1942. He had taken a buddy’s watch and was hit by a friendly ship. So sad, he was the beloved family member everyone likes. So yeah, would like to see Trump ACTUALLY remember the dead, not fake it.
Mr. Trump also called the fees Panama charges to transit the canal “exorbitant.” They are lower than almost any other passage like the Suez. Perhaps he just does not know. Panama prices, even after raising them to cover drought cost increases, are much lower. To clarify his lie, a Trump spokeswoman said we have more ships so we pay more. Hey, you can make it up on volume. And team Trump loves to make em up.
Bottom line: hey, if he boots China from operations, that’s a good thing, IMO. Although China operating ports is not a bad thing, or at least according to Trump, not as important in 99 other ports that Trump is not focused on. Including 5 in the US. But China does not operate the canal and is as capable of taking it militarily as we are in taking it back militarily. Whether or not they operate some ports does not change that. And if they did, in the end of that, there would be no more canal anyway.
I just can’t understand Trump on this, at this time, and oh my — in this manner where he pisses so many off as his manner intimidate them into making a better deal. They have all seen this, know his act well by this point, and know like a little kid, if they just wait 15 minutes, he will go after another shiny bobble. This guy is a one trick pony and has little nuance or subtlety. He ought to stick to walls.
Why does Trump need the distraction?
Today the Felon King gets his sentencing for the hush money case where he attempted to rig the 2106 election. He will celebrate that it’s a nothing punishment validating his terrible behavior and he has been a convicted felon for some time now. This is basically just another reminder. He can, and should, still appeal.
In a few days, Jack Smith’s 1/6 report will come out, Trump lost his quest for that not to happen, but Smith requires three days post the ruling to release. Nothing new expected, but more details as to his alleged illegal activities to turn the 2020 election, illegally, to his favor will be revealed for some tasty stories in the news for a few weeks.
The documents and Georgia cases stay mum for now. Documents will probably stay muted with Trump’s weaponized DOJ and Georgia is a coin toss given the political demographics in that State. The NY sentencing sets a tone for Georgia to do something.
I have never been to the Panama Canal but I believe John McCain was born there!
My point, I just distracted you for two seconds from the ridiculous cabinet picks Trump is currently making.
Also, while you read what I wrote you were not thinking about Trump’s NY sentencing today. He is now a convict for all time but you did not think about this for two seconds.
Trump needs to get your minds off of the aforementioned cabinet picks and criminal sentencing. This is his goal. You are being sucked into his goal just like I sucked you into my goal to distract you for two seconds.
According to Newsweek, Trump is lying. Nothing new there. See *https://www.newsweek.com/fact-check-does-china-control-panama-canal-trump-suggests-2006047* The bottom line is not to play into Trump’s mass distraction!!!
As far as China’s influence in the world, this is another issue for another discussion another time. The US has not shown much interest in Central and South American countries for decades. This has been a mistake in many ways as it fuels the rise of Chinese influence in the Americas, and, it fuels illegal immigration to the US. This is just another way China is waking us up! The real issue is how do we counter China’s influence? Trump tax cuts will only make it more impossible since we will be sky high in debt and will not be able to invest in other countries. Thanks GOP!!! Thanks Trump!!!
Tom, there is concern about China’s involvement in so many ports. Even if they do not rule ours, they have all the cranes, and the software for that. That should be as much, or more concern, than owning a farm a mile from a military base.
BUT —- one can see why the world’s factory might want to extend their leverage into being the world’s ports too. At minimum, get’s their ships priority berthing. Heck, the Brits established Singapore trading in 1819. Hardly a product comes into Asia that does not hit Singapore. Not like the Chinese invested tactical logistics.
Don’t matter, there tis it. And whattya gonna do about it? Making a spectacle out of Panama just gives China the heads up, not much more productive than that. And the distraction value. Heck, we got this shit everywhere. Russia and icebreaker exploration of the icecaps. They have 46, 11 being built. We have 5, 3 being built. China as EV’s: they own the world, we barely own the US. There’s lots of this stuff going on, much of it just natural competition, but we need to pay more attention to it and less attention to beating each other up, which is what Dempsey is after. But not DO, he just is a bit off base on this one, IMO. As I say, there are only three ways to get shit done: the right thing, the right way (perferred), the right thing, the wrong way (in a pinch), and the wrong thing, the wrong way. Oliver just did not catch that this is either two or three. And given the laser focus on the small picture, completely missing the big picture —— it’s currently the third choice: wrong thing, wrong way.
I spell my name: too much.
Wow! Jesus Frank wants China to continue to own Panama. China has been buying up our lands all over America, mostly near where the military bases are located. Frank wants China to take over America and then the world. Even from several years ago when we all go the information that Gavin Newsome was trying to set areas of California on fire until not one American was left in California to allow China to come on land to build their military bases and housing there then invade all the rest of America. Frank is in love with China. All he said above was anything China and the pure hate for Trump. And Tom piped in too. Frank wants China to take over America and all the rest of the countries. Everything he said is treason. He is totally against America except for his little home. China has been allowed to take over here through the fake Biden and the fake administration, Obama, Soros. Should I list Frank, too? Maybe, maybe not. But it sure looks that way. Frank always says what he thinks Trump did or said that hasn’t even happened yet or emphasizes horribly things Trump did do to make it much worse than it is. Now I am saying what I think Frank has in his head. Two or more can play the same game, if you can call all of today as a game. Frank loves China more than America. I think I need to make a phone call to some very important people about all of this and then forward every PBP I have saved for months and months for them to read and see what they see what they make of all of this. I stand for America only. No other country has a right to be here to take us over. But that is what Frank wants. Too bad he won’t get his way. If people cannot stand up for America, they do NOT belong here. I cannot abide by traitors! And yes, Jesus Frank, you did convey all of that!
Af: you are not even close to an accurate description of my comments. Matter of fact, you seem to see polar opposite of what I write. And then you fabricate much. Basically not one thing you say here is true.
Who cares. it’s all off topic. personal, emotional, and childish.
And the ridiculous, feckless, threats to imaginary authorities are just getting silly. To think you are storing my musings is hilarious considering my verbosity. How BIG is your server farm.
What a joke. thanks for the Friday funday.
once again, no issues, just personal attacks. But high energy. lots of passion.
I spell my name: danger. And this dog don’t hunt. All Stetson, no bull.
I absolutely do Not in any way, shape or manner fabricate ANYTHING you say. I do and will always tell the God’s honest truth unlike you! You prove your hate and hate for America and most people with every single thing you write. So many others are now on your back for the same thing. Show you lied again and also fabricated my words. You are a traitor. You want to be called danger. With that, you must be a CIA plant like I said yesterday. You are so damned hateful you are pathetic, and you have Tom following in your footsteps, or typesteps. Why do you love China and the Chinese so much? China is trying to take over all countries slowly and are working on doing that to AMerica. Your love for China shows you are definitely a traitor. You also say so much against Trump and American laws and lives. No bull you say? It is bullshit for you! No one has the right to stand up for other countries over their own. Maybe we should ship you off to China with an ankle bracelet so you can’t come back to a wonderful free country ever! Trump is not a criminal, but you do know a criminal’s life. Trump is using psyops and coms to do what he must do. He is a very good man unlike you. I should write him a letter about you, send it to Cheyenne Mountain base where he has been since January of 2020. Why do you not want America to be the best country, have the American people be abundant, have good health and not be forced into FEMA concentration camps or killed so you can have your beloved communism? Not one thing you say is about any of that. All you want to do is to slander and demean everyone especially Trump and his family. That is what almost all of us see in your unpatriotic posts! You make me sick!
I never said I WANT China to continue to own Panama. You made that up. First,I didn’t say it. Second. China does not own Panama, the concept is impossible for them to continue to own it.
BUSTED.
But wait. there’s more.
I never said I want China to take over America much less “all the rest of the countries.” You made that up.
You admit your lies when you say: “Now I’m saying what I think Frank has in his head” admitting you are fucking making shit up.
BUSTED big time.
You are crazy enough to be from California. Are you a Malibu momma? Hope you’re safe but really. quit lying or if you must, at least do better than this.
I spell my name: often.
NOT BUSTED. You didn’t have to say it. That is what I meant in the above post from me. But just because you didn’t exactly say that doesn’t mean you want all that. You are a very terrible person, and you know it. We all know it. We all see it. Traitor. I told you – in God’s name, I do not lie or make things up. But I wasn’t kidding either. I can do something about you that you won’t like. So – YOU stop or it will be too late. I have never been in California, nor do I ever want to go to that corrupt evil state. But maybe you are from there, Jesus Frank? You do belong where all the corrupt criminals live. I have never been further west than Michigan or Texas. Again, you make me sick, criminal!
All shit. No bull. The only thing dangerous about you is the smell. You probably wouldn’t make it a week without your computer But don’t worry. Trump will make you proud.
Joe Gilbertson: where are you going with these threats?
My free speech is facing intimidation, sometimes physical threats.
Is this ok for your extreme free speech? Is this how you roll?
This is circling the bowl.
I find journalist disgusting in their left sided accounts with their usage of collective adjectives. I would like the PRESS Ito give the basic fact base reporting and leave the opinions to the readers. The above reporter made the comment ‘ According to “Newsweek, Trump is lying. Nothing new there.” ‘ Personally I chose not to believe, nor follow “TOM” in his reporting, or any journalist, in that they are now changing their prior opinions jumping aboard and leaving their greatest source of perfection, Joe Biden, Hunter and family back in the WH reporting none of their LIES and DECEIT.. Compared to Joe Biden and 50+ years in representative government and Donald J. Trump’s 4+/- years, President Donald J Trump gave his all for the love of this COUNTRY and PEOPLE!