1776Reporting
“Welcome to the United States Canal!” Donald Trump posted on Truth Social Sunday, paired with an image of the American flag soaring above a narrow waterway. This bold statement wasn’t just patriotic fanfare—it was a declaration tied to a larger geopolitical battle.
Earlier that day, Trump addressed a charged crowd at Turning Point USA’s AmericaFest rally, vowing to prevent the Panama Canal from falling into what he termed “the wrong hands.” His words reignited discussions about the strategic waterway built by the United States over a century ago to connect the Atlantic and Pacific Oceans.
“We’re being ripped off at the Panama Canal like we’re being ripped off everywhere else,” Trump proclaimed, criticizing increased fees imposed on American shippers. His argument combined economic grievance with national security concerns.
A Historical Shift
The Panama Canal, originally an American possession, was transferred to Panamanian control under two 1977 treaties negotiated by President Jimmy Carter. The agreements mandated Panama to operate the canal neutrally, with fair pricing, and allowed the U.S. to intervene if its neutrality was ever threatened.
Full control of the canal was handed over to Panama on Dec. 31, 1999. Yet, concerns lingered about the canal’s vulnerability to external influence, particularly as global politics evolved.
Enter China
In 1996, Panama signed a 25-year agreement outsourcing management of the canal’s entry ports—Cristóbal and Balboa—to Hutchison Whampoa, a Hong Kong-based shipping company. At the time, Hong Kong was a British colony, and U.S. officials deemed the arrangement non-threatening.
However, when Hong Kong reverted to Chinese control in 1997, the landscape changed dramatically. Today, Hutchison operates under a Chinese regime known for leveraging its companies to advance state interests worldwide.
By 2021, Panama renewed Hutchison’s concession, effectively extending China’s influence over one of the world’s most critical maritime passages. Meanwhile, Beijing has funneled over $2.5 billion into Panama, with more than 40 Chinese companies now entrenched in the Canal Zone.
In 2017, Panama officially recognized China over Taiwan, signaling its deepening ties with Beijing. For many, this move underscored a troubling shift in allegiance.
Risks for the U.S.
The Panama Canal is essential for American trade and military strategy. Two-thirds of its commercial traffic involves the U.S., and the canal remains vital for moving naval forces between the Atlantic and Pacific.
With Chinese-controlled entry points on both ends, critics warn that Beijing could disable the canal at will, jeopardizing American economic stability and military readiness.
Trump’s Proposed Solution
Trump called for decisive action to restore U.S. control of the canal, citing national security concerns and potential violations of the 1977 treaties by Panama. “A forceful demand for the canal’s return could compel Panama to act,” Trump suggested. Should diplomatic pressure fail, he floated the possibility of military intervention to reclaim the waterway.
Panama’s President José Raúl Mulino dismissed Trump’s remarks, asserting that “every square meter of the Panama Canal belongs to Panama, and will continue to do so.” Mulino’s statement, bolstered by China’s backing, drew skepticism given Panama’s history of corruption and lack of military defense.
“We’ll see about that,” Trump retorted. His words hinted at a renewed focus on the canal should he return to the presidency.
A Geopolitical Flashpoint
As tensions mount between the U.S. and China, the Panama Canal’s fate has emerged as a potential flashpoint in global politics. Trump’s rhetoric, while divisive, underscores the growing urgency to address vulnerabilities in critical international infrastructure.
Whether through diplomacy or force, the question remains: can the U.S. reclaim its influence over the canal, or has this vital waterway irrevocably slipped into the “wrong hands”?
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