In a provocative and highly unusual statement on December 21, former US President Donald Trump threatened to take back control of the Panama Canal, accusing the Panamanian government of charging excessive fees for US ships passing through one of the world’s most vital waterways. This remark, made on his Truth Social platform, marks the latest in a series of statements by Trump that have raised questions about US foreign policy and his approach to international relations. The threat to demand the return of the canal, a geopolitical asset, underlines Trump’s unorthodox and confrontational style of diplomacy, particularly as it pertains to global trade routes and the economic interests of the United States.

The Panama Canal, which connects the Atlantic and Pacific Oceans, has long been a strategic point of interest for the United States. Completed in 1914, the canal was initially built by the US following an agreement with Panama, which had gained independence from Colombia in 1903 with US assistance. For much of the 20th century, the canal was administered by the US as a key part of its global military and economic strategy. The US controlled the surrounding Canal Zone, a territory roughly the size of the canal itself, and enjoyed significant political and military influence in the region.

However, the US formally handed over control of the canal to Panama on December 31, 1999, after years of negotiation, particularly under the 1977 Torrijos-Carter Treaties. These treaties outlined a gradual transition of control, culminating in Panama assuming full authority over the canal. The handover was seen as a victory for Panama’s sovereignty and a step toward reconciliation between the two nations after years of contentious relations regarding the canal.

Despite the 1999 handover, the Panama Canal has remained a critical asset for global trade, with an estimated 5 percent of world maritime traffic passing through it. This includes a significant volume of US trade, particularly with Asia. The canal allows ships to bypass the long and treacherous route around South America’s Cape Horn, making it an essential component of U.S. and global shipping networks.

In his recent post, Trump expressed his dissatisfaction with what he described as “ridiculous” fees charged by Panama for US ships using the canal. The US President-elect made it clear that he viewed these fees as unfair and damaging to US economic interests, accusing Panama of taking advantage of the situation. His language was sharp, calling the fees a “complete ‘rip-off'” and vowing to put an end to them.

While the Panama Canal Authority (ACP) reported that the waterway earned a record $5 billion in the last fiscal year, Trump’s comments suggest that he sees the current arrangement as economically detrimental to the US He argued that the canal was originally built with US labor and investment, and that it was transferred to Panama as a gesture of cooperation, not to benefit other nations or external powers.

The language Trump used also hinted at broader concerns over China’s increasing influence in the region. He specifically referred to the canal as being “solely for Panama to manage, not China or anyone else.” His remarks may have been directed at China’s growing presence in Latin America, particularly through investments in infrastructure projects, as part of its Belt and Road Initiative (BRI). China has long been interested in the strategic potential of the Panama Canal, with Chinese companies reportedly involved in port development projects on both the Pacific and Atlantic sides of the canal.

Trump’s mention of China’s influence is not new. Throughout his presidency, Trump frequently took a hardline stance on China, accusing it of economic manipulation and unfair trade practices. His administration also initiated a trade war with China, imposing tariffs on Chinese goods and encouraging US businesses to rethink their economic ties with the Chinese market. In the case of the Panama Canal, Trump’s suggestion that the canal should never fall into “the wrong hands” likely reflects concerns about Chinese dominance in strategic global infrastructure and trade routes.

Trump’s suggestion that the Panama Canal should be returned to US control is extraordinary in its scope and historical context. While the US has at times used its military and economic might to influence countries and regions in the past, a US leader threatening to take back control of a sovereign nation’s infrastructure is a rare and alarming proposition. Such a statement runs contrary to longstanding US policy, which has generally respected the sovereignty of nations and the agreements made through international treaties.

The Panama Canal has been under Panamanian control for nearly 25 years, and any attempt by the US to reclaim the canal could have serious diplomatic and geopolitical consequences. Panama is a sovereign state, and its control over the canal is a matter of national pride and international law. A US attempt to seize control could trigger a serious diplomatic crisis not only with Panama but also with other nations in Latin America and beyond, potentially undermining US relationships in the region.

Additionally, Trump’s aggressive rhetoric is likely to escalate tensions between the US and China, especially if China’s role in the region is perceived to be part of broader geopolitical competition. In recent years, China has worked to strengthen its economic ties with Latin American countries, with a focus on infrastructure and trade. The US has historically seen Latin America as part of its sphere of influence, but China’s increasing presence is shifting the balance.

Trump’s statement about the Panama Canal is also reflective of his broader approach to diplomacy. Throughout his time in office, Trump demonstrated a preference for unilateral action and often used threats and economic pressure as a primary tool in foreign policy. His administration pulled the US out of several international agreements, including the Paris Climate Accord and the Iran nuclear deal, and imposed tariffs on numerous countries. This approach often alienated traditional US allies, while also creating opportunities for rivals, such as China and Russia, to assert their influence.

Trump’s proposed tariffs on Mexico and Canada, which he also made via Truth Social, reflect a similar posture of confrontation, demanding that neighboring countries take immediate action to address issues like migration and drug trafficking, or face economic penalties. His willingness to escalate trade tensions and use tariffs as leverage shows his unorthodox method of negotiating with both allies and adversaries.

While Trump’s comments about the Panama Canal may seem like an isolated incident, they reveal much about his style of diplomacy and his approach to US foreign relations. His administration’s focus on economic leverage, threats, and a preference for unilateral decision-making is evident in these recent remarks. The Panama Canal, as a crucial geopolitical asset, is symbolic of broader concerns about the US’s role in the world and the growing influence of rival powers like China. Whether or not Trump follows through on his threat, his words underscore the ongoing tension in global politics and the shifting dynamics of power in strategic regions like Latin America.

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