Trump threatens to take back Panama Canal over 'ridiculous' fees | Donald Trump | The Guardian
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Trump also warns he would not let a 'vital national asset' for the US fall into the 'wrong hands'
Donald Trump has demanded that the Panama Canal be given back to the US if Panama did not manage the waterway in a fashion that was acceptable to him - and he accused the central American country of charging excessive rates for use of the ocean-connecting ship passage.
"The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the US," Trump wrote on his Truth Social platform late Saturday, a little more than a month before the start of his second US presidency. "This complete 'rip-off' of our Country will immediately stop…."
In the evening post, Trump also warned he would not let the canal fall into the "wrong hands". And he seemed to warn of potential Chinese influence on the passage, writing the canal should not be managed by China.
Trump said the Panama Canal was a "vital national asset" for the US, calling it "crucial" for commerce and national security.
The warning comes days after Trump mused in an early-morning thought blast that Canadians might want Canada to become America's 51st state, taunting prime minister Justin Trudeau as "Governor Trudeau".
Trump's Panama thinking underscores an expected shift in US diplomacy after he takes office in January, particularly in regard to China and European security. On Friday, the Financial Times reported that Trump's team had told European officials that he will demand Nato member states increase defence spending to 5% of their GDP.
Trump's rhetorical threat to Panama, however, comes 25 years after the US handed full control of the canal to Panama following a period of joint administration.
In 1977, president Jimmy Carter negotiated the Torrijos-Carter Treaties that gave Panama control of the canal and the Neutrality Treaty, which allowed the US to defend the canal's neutrality. The canal is currently administered by the Panama Canal Authority.
The US completed the 51-mile canal through the Central American isthmus in 1914 and is still the canal's biggest customer, responsible for about three quarters of the cargo transiting through each year.
China is the canal's second-biggest customer, and a Chinese company based in Hong Kong controls two of the five ports adjacent to the canal, one on each side.
But a prolonged drought has hampered the canal's ability to move ships between the Atlantic and Pacific oceans. National economic council director Lael Brainard said last week that shipping disruptions contributed to the supply-chain pressures.
The Panama Canal has experienced a 29% decrease in ship transits over the past fiscal year due to severe drought conditions, according to the canal authority. From October 2023 to September 2024, only 9,944 vessels passed through the canal, compared to 14,080 the previous year.
In his post, Trump suggested that the canal was in danger of falling into the wrong hands, saying the canal isn't China's to manage.
"It was not given for the benefit of others, but merely as a token of cooperation with us and Panama," Trump said.
"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. To the Officials of Panama, please be guided accordingly!"
An official for Panama's government told Bloomberg late Saturday that he was aware of Trump's statement and there would be a formal response in the coming days.
Last month, the Nicaraguan president, Daniel Ortega, unveiled plans for a 276.5 mile (445-km) interoceanic waterway that would provide an alternative to neighboring Panama's waterway.
In a proposal to Chinese investors at a regional business summit, Ortega said "every day it becomes more complicated to pass through Panama" and said Nicaragua's canal project could attract Chinese and American investment, noting that the US had considered building a Nicaraguan canal as far back as 1854.
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Reuters contributed reporting
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What is Trump going to do, invade a sovereign country or blockade the canal. First the dumb ass should find out how many US container vessels use the Panama Canal in a year. Here is a good guess 0 to 5.
exactly. it should have been negotiated prior that all US flagged and registered vessels should pass thru the canal free ...
Yeah, I don't think he thought that through...
I'm confused, is the article incorrect?
The US is the biggest customer but what the article fails to mention the US does not own any US owned container ship companies left after APL was sold to Singapore. The cargo on the ships is destined to US ports but the vast majority of ships are owned by world container shipping companies. The US doesn’t even register in the top 100. So if the fees were lowered who do you think will get the discount? The container line because they are the ones that pay the bill, not the US importer/exporter. Which would be COSCO (china) OOCL (Taiwan) Evergreen (Taiwan) CGM (France) Maersk (Denmark) Hapag LLoyd (Germany) etc.
So the transit fee isn't included in the importer/exporter shipping fees? I doubt the container lines are footing the transit fee bill.
I never said that. The fee is cost of doing business and is build into the rate structure.
We’re actually the biggest user of the canal, by far.
The product being exported and imported is largely cargo for/from the US. As stated above the ships are not US flagged or owned ships. The fees are paid by them and if there is a reduction do you think that they will pass on the manual savings to importer and exporters?
If Trump get Panama to reduce the fees than China will be very happy as will the vast majority of shipping lines since they are not US flagged or owned ships.
A few things:
Flags are a thing of convenience for legal and financial reasons. Ships of all types are routinely flagged in countries that have nothing to do with ownership of the ship or their cargo. I don’t know how many US flagged ships transit the canal, but it’s not relevant.
Fees for shipping are ultimately always passed on to the consumer.
You don’t have to have title to a thing for it to be an asset. An asset can be anything that benefits someone or is used by them. Something like 40% of US shipping flows through the Panama Canal, and we get more use out of it than any other country. All of that makes it a US asset, and we should be proactive in protecting that asset.
A few more things:
Yes, I’m well aware of the advantages of flagging your vessels in a third country. I’m also aware that it has nothing to do with ownership of the vessel. There are NO US flagged container vessels using the canal because the US has NO international owned container lines plying that trade.
Yes, they are as are bunker costs, Longshoreman charges, warfare charges, repair and maintenance, crewing, etc. Nothing new there.
I’ll have to disagree with that. We can call the canal anything that we want but it is sole property/asset of the Republic of Panama. Yes, US importers and exporters get more use out of it than any other single country. That means little it isn’t ours and as I stated earlier we do have the right to defend it which is in the treaty between the US and Panama. NO other country owns any part of the canal, it is owned by the Republic of Panama the five ports associated with it are operated under contract with the Panamanian government. They own nothing they simply operate the ports facilities. It is the same in the US were other companies from non American companies operate some of the ports just like the US does in other counties. We have had the chance to bit on these contracts and have not been successful.
Now, please explain to me how we should be proactive in protecting the canal? First it is in no danger from any country to restrict the use of it. The largest serious problem that they have is the ongoing drought which has cut traffic by 29% which of course is raising the transit rates. This has been a serious problem for a few years and isn’t getting any better.
PINO Trump is shooting off his mouth to impress his MAGA followers and IMO it’s all about thinking that he can direct there attention to look at this as lowering the prices of good including food articles.
A few years ago a $5 billion dollar expansion to increase the size of the canal to handle the larger Post Panamax vessels.
Definitions of words like property and asset can be quite complex. I sense there is a political need to mock Trump for using the word asset, but I believe it is a fairly used term in this context, and I have already explained why. Trump is a dirtbag, but he can still have a worthy point on an individual topic.
There is no need by me to mock Trump, his comment was enough to mock himself, Tacos. His comment that is the title of the article is enough to make anyone shake their head in disbelief.
He wants the canal back if he feels that Panama isn’t running it to according to what he ‘’feels’’ is good. Please, Panama isn’t going to give the canal back, so what is he going to do, invade a sovereign county and take over the canal. World wide invest to expand and modernize it so it can handle the post Panamax vessels. I’m sure that they would just fine with it.
It is my opinion that he is doing nothing more than stir up shit. It is his MO for his entire career and he hasn’t changed.
Perhaps he could try to buy Greenland again or make Canada the 51st state.
I didn’t mean just by you. I see that reaction a lot today, without a fair analysis of whether or not his language is appropriate. The more expansive definition of “asset” I described above can be found in dictionaries and in the law.
That’s circular. We should mock him for his comment because his comment is worthy of being mocked?
So let’s hear his argument and actually analyze it. If he can make a better deal for us in Panama, what’s wrong with that?
It’s a little early to assume to that. I perceive a lot of concern for the sovereignty of Panama that I believe isn’t warranted. First, Trump has not threatened Panama with force. Second, we built that canal for ourselves and also for global trade. We turned it over to Panama voluntarily for certain considerations. It’s not just theirs to do with as they please.
If Panama suddenly decided to flex its sovereignty and shut down the canal (real power over a thing can be expressed in the power to destroy that thing), do you really think the world’s powers would tolerate that because of Panama’s sovereignty? I don’t. Panama’s sovereignty, in this context, is for all practical purposes, limited.
Think of the canal as an easement. Those who built it and use it have rights, too.
Hey, if he can get a good deal for Greenland, there’s nothing wrong with that. And I would love to see Canada merge with the US. It’s not going to happen, but I don’t think it would be a bad thing. I’m not assuming it would happen by force.
Canada merge with the USA?
Yeah, a continent - and ultimately a world - united in democracy would be such a terrible thing! /s
Yes, he is worth double mocking.
And therein lies the problem, he has no argument or plan, he is simple trying to show the MAGA that he is fighting for them. What better deal? The canal operates fine billions have been invested for it to handle the post Panamax vessels.
There is no feasible reason for Panama to shut down the canal, it is a huge part of their revenue. What did the world powers do when Suez was shut down?
Bernie Sanders said it best, do we get their medical coverage and RX prices, he’s all for it. I doubt if the Canadians are all for it in fact they did a poll in Canada and they overwhelmingly had no interest in becoming the 51st state.
Acutally the bottom line to all of this is Trump babbling and it will probably be forgotten in a few weeks.
Baamaapii (until later)
I don't think i would bet on that pipe dream.
I think he's simply setting up his excuses for why he can't bring prices down. It will never be because he lied. It's all going to be someone else's fault.
I’m not. But the freak out over stuff like this is highly partisan and irrational, in my opinion. It’s the kind of thing that both sides are prone to: a thing is wrong - horrifying, even - merely because someone on the other side said it.
he's getting ideas from his pals bibi and putin, he'll just annex what he wants ...
Giving it away was another Jimmy Carter mistake
Torrijos-Carter Treaties were approved by the US Senate. We had from 1979 to 1999 with partial control and in 1999 it was turned over to Panama which now owns the canal, it’s their land, and they own all five ports in the canal, the Chinese do not OWN any thing in the canal it is all property of the Reublic of Panama. China operates two of the ports under contract with the Panama government, the US had/has the same opportunity to contract to operate any of the ports.
We do maintain the right to defend the canal if needed.
Are you aware of this?
This has been on the drawing board for a few years now, Buzz.
Trump would just waste American taxpayers' money on the Panama Canal.
This is actually true. I don’t know if we have a genuine problem in Panama or not, but we should be exercising enough control over the canal that no one else can use it to control us.
But for the US, that canal would not be there and Panama would not even exist as a country. I think we’ve earned a little influence and control.
The biggest problem with the canal now is the drought which in the last few years has cut the number of ships transiting it by 29% driving up cost. Perhaps Trump could do a rain dance with Musk drumming. It would be great to see a PINO (president in name only) dancing.
It is not a national asset of the US. It is owned lock stock and barrel by the Republic of Panama and the only one that sees a problem is Trump which is to appeal to his MAGA followers.
What type of control do you recommend, Tacos? Should we set the fees, charge for the water coming out of the freshwater lakes. It’s a sovergien country it’s that simple.
I would love to see us invest in improving the canal’s water supply. But two or more things can be true. There can be a water issue and an economic or control issue. Maybe they could all be resolved to our benefit in one negotiated deal.
If it isn’t broken don’t try and fix it. It is as simple as that.
it's a canal plumbing issue. the canal flushes out fresh water to the oceans with every ship.
we can solve two problems at once - dig a new canal !!!
LOL, good luck with that.
The line is on the wrong side of Texas.
Ha.. probably be a wall on that side....
Why not dig it along the Cdn/US border? There's a lot more water available for use up at that end of the continent, plus the Great Lakes and St Lawrence are already there
President Musk says nah, they're mostly white up that there end of the country,
and mini me says "yea,white is right, hey Elon get out of my chair, move over, it's dark in your shadow, biglyyyyyy"
The Panama Canal is 50 miles long deep water to deep water. The canal would have to be 3k to 4k to even think about it, Freefaller.
Facts sheesh, ruin my fun why don't ya
You’d have to go through some pretty big mountains, though.
And poison the drinking water of tens of millions of Canadians and Americans not to mention what it would cost to build a canal.thousands of miles long. Were you aware of how shallow Lake Erie is?
Yeah but it gets pretty flat after that
More facts ruining my fun
You would prefer fiction?
LOL, when I'm just having some fun yes I would
You understand no one is serious about any of this, right?
I know, tell Freefaller.
More rhetoric and bullshit from a failed former president that couldn't even run a fucking casino.
a cash business with the odds against failure in the house's favor ....
So why is trump pushing this ridiculous BS? Revenge, of course.
fucking deadbeat POS ...
NEWS FLASH:
PINO TRUMP HAS ORDER McDONALDS TO CLOSE ALL MICKEY D’S IN PANAMA. TRUMP WAS HEARD TO SAY DURING A LATE NIGHT 1/4 POUNDER BINGE, ‘’Youse guys want trouble, no more vein cloggers for you’’.
that inept fucker is setting himself up for an epic fail, which his cult will have an even more difficult time defending ...
PINO Trump just found out that there are no McDonalds in Greenland, so it’s of no value to him. Case dismissed.