Trump’s Panama Canal Comments Stir Controversy: Here’s What You Need to Know

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President-elect Donald Trump has sparked a geopolitical firestorm with his recent comments about the Panama Canal, suggesting the U.S. should reclaim control of the iconic waterway. Trump’s claims of overcharges, alleged Chinese influence, and historical ties have drawn sharp rebuttals from Panamanian leaders and ignited debate on social media.

Trump’s Bold Claims

Over the past week, Trump has criticized Panama for raising canal fees, threatening to demand the canal’s return if the situation doesn’t improve after his inauguration next month. Taking to Truth Social on Christmas Day, Trump claimed China is illegally operating the Panama Canal, accusing Beijing of wielding undue influence over the critical trade artery.

“Christmas greetings to all, including the wonderful soldiers of China, who are lovingly, but illegally, operating the Panama Canal,” Trump posted. He referenced the canal’s history, stating, “We lost 38,000 people in its building 110 years ago,” and lamented the lack of U.S. control despite ongoing investments in repairs.



Panama Fires Back

Panamanian President Jose Raul Mulino wasted no time responding to Trump’s remarks. In a video statement, Mulino declared, “Every square meter of the canal belongs to Panama and will remain so.”

He dismissed allegations of Chinese control, asserting, “China does not control or administer the canal. When it comes to our canal and our sovereignty, we will all unite under our Panamanian flag.”

Mulino clarified that while Chinese companies are involved in nearby port management and infrastructure projects, the canal itself is operated by the Panama Canal Authority (ACP), an autonomous government agency.

Separating Fact from Fiction

The Panama Canal, a 51-mile engineering marvel connecting the Atlantic and Pacific Oceans, has been under Panamanian control since December 31, 1999. The transfer followed the 1977 Torrijos-Carter Treaties, which guaranteed the canal’s neutrality and accessibility while affirming Panama’s sovereignty.

While Hong Kong-based CK Hutchison Holdings manages two ports near the canal, and Chinese firms have invested heavily in infrastructure, these activities do not equate to operational control of the canal. The ACP transparently manages the canal, setting tariffs essential for maintenance and expansion.

Why It Matters

The Panama Canal is a vital global trade route, generating nearly $5 billion in revenue last fiscal year. It is most frequently used by the United States, China, Japan, and South Korea, underscoring its strategic importance.

Panama has invested significantly in expanding the canal to accommodate larger vessels and increase traffic. According to Mulino, shipping fee increases are necessary to fund these improvements and ensure the canal’s long-term viability.

The Verdict

Trump’s claim that China controls the Panama Canal is false. While Chinese companies are involved in nearby port management and infrastructure projects, the ACP retains full authority over canal operations. Panama’s sovereignty over the waterway has remained intact since 1999.

A Storm in the Making

Trump’s comments have reignited long-standing debates about the canal’s history, global influence, and ownership. As Panama stands firm on its sovereignty, the controversy serves as a reminder of the canal’s enduring significance—not just as a trade route, but as a symbol of national pride and independence.

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