Donald Trump stated on Saturday that the United States might reclaim control of the Panama Canal if the Central American republic fails to uphold the 1977 treaty governing its operation. The president-elect alleged on Truth Social that Panama is overcharging American vessels and hinted at treaty provisions he claims could justify U.S. intervention.
“If the moral and legal principles of this magnanimous act are violated, we will demand the full and unconditional return of the Panama Canal to U.S. control,” he wrote, without specifying what violations he believed had occurred.
Trump’s statements come amid growing concerns about Chinese influence in Latin America. Although a Hong Kong-based company manages ports at both ends of the canal, there is no evidence that China directly controls its operations. The canal’s administration remains firmly under the Panama Canal Authority, an independent agency of the Panamanian government.
Panama’s newly elected President José Raúl Mulino has expressed a desire to strengthen ties with Washington. While Mulino’s administration has not addressed Trump’s comments directly, it has reiterated its commitment to the canal’s neutrality and efficient management.
Handling nearly 14,000 transits annually, the canal serves as a critical artery for global trade, linking economies across the Americas, Asia, and Europe.
In 1903, the United States brokered an agreement with the newly independent Republic of Panama to construct and control the canal, creating a milestone link between the Atlantic and Pacific Oceans. In return, the U.S. guaranteed the waterway’s neutrality and shared revenues with Panama. The arrangement also established the Panama Canal Zone, a U.S.-governed territory that became a focal point of Panamanian resentment.
By the 1970s, growing tensions over U.S. control of the canal led to negotiations between Democratic President Jimmy Carter and Panamanian leader Omar Torrijos. The resulting 1977 treaties transferred control of the canal to Panama by the end of 1999, while allowing the United States to intervene only to defend its neutrality against external threats.
Legal experts have dismissed Trump’s interpretation of the treaties as unfounded, as the agreements seemingly underscore Panama’s sovereignty and provide no legal pathway for the United States to reclaim control.
