Trump Advocates for Free Passage of U.S. Ships Through Panama and Suez Canals
In a bold statement posted on Truth Social this Saturday, U.S. President Donald Trump asserted that American military and commercial vessels should be permitted to transit the Panama Canal and the Suez Canal without incurring any fees. Trump announced that he had directed Secretary of State Marco Rubio to "immediately address and formalize" the issue.
This latest demand reignites longstanding debates over control and usage rights of two of the world's most vital maritime routes. The Panama Canal, a 50-mile engineering marvel completed by the United States in 1914, connects the Atlantic and Pacific Oceans at the narrowest point of the Americas. The canal facilitates approximately 40% of the annual container traffic bound for or originating from the United States, making it a cornerstone of American trade and global logistics.
The historical context of U.S. involvement with the Panama Canal adds weight to Trump's comments. Originally built and operated by the United States, the canal was handed over to Panama on December 31, 1999, following the Torrijos-Carter Treaties signed in 1977. Since then, the Panama Canal Authority, a Panamanian government agency, has managed its operations and maintenance, charging transit fees that contribute significantly to Panama’s economy.
Trump has long expressed dissatisfaction with the current arrangement. During his presidency and even after leaving office, he has hinted at a desire to "take back" control of the Panama Canal, emphasizing its strategic importance to American interests. Notably, in comments made before his term began in 2025, Trump suggested he would not dismiss the possibility of leveraging economic pressure or even military force to reassert U.S. influence over the canal.
The Suez Canal, located in Egypt, connects the Mediterranean Sea to the Red Sea and is another critical artery for global commerce. Unlike the Panama Canal, the Suez Canal has always been under the control of Egypt, though it was the subject of international tensions during the 20th century, notably during the Suez Crisis of 1956.
Trump's assertion raises significant geopolitical questions. Neither the Panama Canal Authority nor the Suez Canal Authority has given any indication that they would consider exempting American vessels from transit fees. Such a demand, if pursued aggressively, could strain U.S. relations with Panama and Egypt, potentially leading to diplomatic and economic repercussions.
The Strategic Importance of the Panama Canal Today
The Panama Canal remains an essential asset in international trade, especially amid growing competition between global powers. With increased congestion and drought-related limitations affecting its capacity in recent years, the canal has become a strategic chokepoint. The U.S. relies heavily on it for the efficient transportation of goods ranging from consumer products to critical raw materials.
Moreover, the expansion of the canal in 2016, allowing for the passage of larger "New Panamax" vessels, has further cemented its role in modern maritime commerce. Any disruption to U.S. access, or significant changes to toll structures, could have cascading effects across American supply chains and consumer markets.
Donald Trump’s latest remarks underscore his broader nationalist approach to foreign policy and economic affairs, advocating for greater advantages for American interests on the global stage. However, the complexities surrounding the sovereign rights of Panama and Egypt, international maritime law, and global diplomatic norms suggest that implementing such a policy would be fraught with legal and political challenges.
As Trump continues to make such provocative statements, it remains to be seen whether his proposals will translate into actionable policy or remain part of his broader rhetorical campaign to project American strength abroad.