Washington DC:

The thought of China preoccupying Donald Trump is concerned about Beijing’s growing influence directly under US control – the Panama Canal – a bridge that connects the Atlantic and Pacific Oceans through strategically located Panama, the country that north – and connects South America.

US President-elect Trump, always ready to threaten others with tariffs, is also concerned about Panama imposing “excessive tariffs” for use of the Panama Canal. The combination of these two factors has left him so unsettled that Mr Trump has openly stated that the US might consider taking control of the Panama Canal.

Donald Trump wrote about his concerns on his social media platform Truth Social, warning that he would never allow the Panama Canal to fall into the “wrong hands.” Mr. Trump reminded the government in Panama that the canal was originally built by the United States more than a century ago, writing: “It was managed solely by Panama, not by China or anyone else.”

He also re-posted a video of himself with the caption, “We would and will NEVER let it fall into the wrong hands!”

BRIEF HISTORY OF THE PANAMA CANAL

Until the beginning of the 20th century, the shortest route to get from the Atlantic Ocean to the Pacific Ocean and vice versa was either to sail around Cape Horn, located in Chile at the southern tip of South America, or to sail through the Strait of Magellan – also at the southern tip End of South America – in Chile. Both meant sailing around the entire South American continent and almost reaching Antarctica before sailing back to either the Pacific or the Atlantic – which was neither economical nor efficient.

After much thought, research and surveying, a narrow but possible path was discovered that leads across the Isthmus of Panama. However, to achieve this a Herculean challenge had to be overcome. The waterway was at different levels and there was no way for a ship to ascend or descend where the topography suddenly changed. Converting the isthmus waterway into an artificial canal would require an engineering marvel – something that was both unimaginable and unknown at the start of the 20th century.

The United States of America was the only nation at the time that had the technical knowledge and expertise to make this possible. And so in May 1904 – less than a year after Panama declared its independence from Colombia in November 1903 – the United States began building the Panama Canal. A treaty was signed between the United States and Panama under which the canal would be built and managed by the United States. After 10 years of around-the-clock engineering work, the Panama Canal became a reality in August 1914 when the SS Ancon became the first ship to pass through the canal.

The US continued to control and operate the canal and surrounding areas until a new agreement called the Torrijos-Carter Treaty was signed between Panama and the US in 1977. This provided for the handover of the canal to Panama after almost two decades of joint operations. The Panamanian government took full control of the canal in 1999.

DONALD TRUMP against Panamanian President JOSE MULINO

Aside from warning that the US would never allow operations of the Panama Canal to be handed over to another country given China’s growing influence and strong presence around the world, Donald Trump expressed displeasure at the “very high” tariffs imposed by Panama.

On Truth Social, Trump wrote: “The fees charged by Panama are ridiculous, especially given the extraordinary generosity the U.S. has shown to Panama.”

“It was not given for the benefit of others, but simply as a sign of cooperation with us and Panama. If the moral and legal principles of this generous gesture of giving are not followed, we will demand the Panama Canal.” “They will be returned to us in full and without question,” Trump added.

Hours after Donald Trump’s warning, the Panamanian government responded, but without naming the US president-elect. Panamanian President Jose Raul Mulino dismissed the threats by posting a video on social media platform

“The canal is not subject to direct or indirect control by China, the European Union, the United States or any other power,” President Mulino said, adding: “As a Panamanian, I reject any statement that misrepresents this reality,” his video message was in Spanish.

🇵🇦 Mensaje del Presidente José Raúl Mulino 🇵🇦 pic.twitter.com/DMXU8qAuNT

— José Raúl Mulino (@JoseRaulMulino) December 22, 2024

President Mulino also said he hopes for a “good and respectful relationship” with the new Trump administration. Donald Trump responded shortly after the Panamanian president’s posts, but left everyone guessing when he wrote, “We’ll see!”

Meanwhile, given the power struggle between the US and China over its military and maritime capabilities, it is important to note that China now has the largest navy in the world, surpassing the United States. China has a declared fleet size of more than 370 ships and submarines. This is significantly larger than the U.S. Navy’s fleet size, which includes 290 ships and submarines.

The Panama Canal is one of the world’s most important waterways for trade and commerce, and freedom of navigation on the seas is one of the top priorities of the democratic world and a cornerstone of its policies.