Donald Trump said he wants the U.S. to regain control of the Panama Canal after alleging that Panama is charging high fees and that China has too much control over the passageway.
“The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S.,” he wrote on Truth Social on Saturday, according to Reuters. “It was not given for the benefit of others, but merely as a token of cooperation with us and Panama. 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 us, in full, and without question.”
The canal, which stretches over 51 miles between the Pacific and Atlantic oceans, was completed by the U.S. in 1914. Former President Jimmy Carter gave Panama control of the passageway in 1977 under the Torrijos-Carter Treaties. The U.S. eventually gave the country full control in 1999.
To this day, the U.S. remains its largest customer as it accounts for about three quarters of the cargo transiting through it every year, according to The Guardian. The Panama Canal allows up to 14,000 ships to cross per year and accounts for 2.5% of global seaborne trade. The U.S. notably uses the canal to import autos and commercial goods by container ships from Asia, as well as commodities like liquefied natural gas, according to Reuters.
Trump also accused China of having influence over the canal, saying he doesn’t want it to fall into the “wrong hands.” Although the country has no direct control over the canal, Chinese company CK Hutchinson Holdings based in Hong Kong manages two ports with entrances to the Panama Canal. China is also the passageway’s second biggest customer.
Panama officials are expected to release a statement in response to Trump’s comments in the coming days, they told Bloomberg. It is currently unclear how Trump would try to regain control of the canal.
Trump’s comments come as droughts have impacted passage via the Panama Canal this year. There was a 29% decrease in ship transits between Oct. 2023 and Sept. 2024, according to the Panama Canal Authority and as reported by The Guardian.
In November, Nicaragua unveiled plans for a 276.5 mile interoceanic waterway as an alternative to the Panama canal.
“Every day it becomes more complicated to pass through Panama,” Nicaraguan president Daniel Ortega said during a proposal at a regional business summit.
He said Nicaragua’s project could attract both Chinese and American investors, adding that the U.S. has historically considered building a passageway in the country as early as 1854.
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