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President-elect Donald Trump announced that the United States would reclaim control of the Panama Canal if U.S. interests are jeopardized, citing provisions of the 1977 Carter–Torrijos Treaty under President Jimmy Carter.
“The Panama Canal is one of the Wonders of the Modern World,” Trump stated on Truth Social on December 21. “It was built at a huge cost to the United States in lives and treasure.” The canal, vital for global shipping and U.S. trade, connects the Pacific and Atlantic Oceans, reducing what once took weeks to an eight-hour transit.
Official records estimate 5,600 workers died during the canal’s construction, in addition to the 6,000 who died building the original Panama Railroad. Generating nearly $5 billion for Panama in 2024, the canal remains a central asset despite challenges like regional droughts.
Trump criticized Panama for charging “exorbitant prices” to U.S. entities using the canal and urged officials to reform their pricing. “This complete ‘rip-off’ of our country will immediately stop,” he said, calling the current fee structure “very unfair” to U.S. commerce.
He referenced the canal’s historic ties to the U.S., citing President Theodore Roosevelt’s payment of $10 million to Panama and subsequent annual payments for its construction and control. The canal was returned to Panama’s sovereignty under the Carter–Torrijos Treaty, but the U.S. retained the right to military action if the canal is used to harm U.S. interests.
Strategic Importance
Trump called the canal “a vital national asset for the United States” due to its role in national security and the economy. More than 70% of canal trade directly involves the U.S.
He raised concerns about increasing Chinese influence in the region. Since the late 1990s, Hong Kong-based Hutchison Whampoa has controlled two critical ports near the canal. In 2017, Panama switched diplomatic recognition from Taiwan to Beijing and joined China’s Belt and Road Initiative a year later, which has fueled criticism of Panama’s ties to China.
U.S. military officials have warned that China-linked projects near the canal could potentially have dual-use functions, providing intelligence to the Chinese Communist Party (CCP).
Trump’s Warning
“The United States has a vested interest in the secure, efficient, and reliable operation of the Panama Canal,” Trump wrote. “We would and will never let it fall into the wrong hands!”
He criticized Carter’s decision to transfer control of the canal, calling it “foolish” and adding, “It was solely for Panama to manage—not China or anyone else.” Trump warned that if Panama doesn’t adhere to moral and legal principles, the U.S. would demand the canal’s full return.
“To the officials of Panama: please be guided accordingly!” Trump concluded.
