Donald Trump Criticizes Panama Canal Handover And Warns Against Chinese Control

Amidst the ongoing tensions with Iran over the Strait of Hormuz, US President Donald Trump has once again brought the issue of the Panama Canal to the forefront. During a significant public appearance, Trump criticized the historical decision to hand over control of the canal to Panama, describing the move as a major blunder. He emphasized that the United States should never have relinquished its authority over this vital maritime passage. Trump's remarks come at a time when global shipping routes are under intense scrutiny due to geopolitical shifts and economic pressures.

Trump Criticizes the Handover and Rising Costs

President Donald Trump voiced his concerns on Wednesday, July 01, while attending the inauguration of the Theodore Roosevelt Presidential Library in Medora. He took the opportunity to revisit the 1977 Torrijos-Carter Treaties, which paved the way for the United States to transfer control of the canal. Although the canal was built by the US in 1914, it was officially handed over to Panama in 1999. Trump labeled this transition as total foolishness and pointed out the economic consequences that followed. According to Trump, since taking control, Panama has Importantly increased transit fees for ships. He claimed that they first quadrupled the prices, and despite no decrease in the number of vessels, they raised the prices twice more. He noted that Panama has made a substantial amount of money over the years from these hikes, which he believes the US should have retained.

The China Factor and Strategic Security

A major part of Trump's address focused on the growing influence of China in the region. He explicitly stated that Washington wouldn't allow China to establish a foothold or take control of the Panama Canal. Trump asserted that the US would firmly oppose any attempts by Beijing to exert influence over this critical waterway. This stance aligns with his broader foreign policy objectives of countering Chinese expansionism in strategic global locations. The President's comments highlight the canal's role not just as a commercial route, but as a focal point of international power dynamics.

Why the Panama Canal is Globally Significant

The Panama Canal is recognized as one of the world's busiest and most strategically important shipping routes. The route begins at Colon, passes through Gatun Lake and the Gaillard Cut, and finally reaches Panama City, while before the canal's completion, ships traveling between the Atlantic and Pacific oceans had to navigate around the southern tip of South America via the Strait of Magellan or Cape Horn. This was a long and perilous journey. The opening of the canal revolutionized maritime travel by reducing the distance between New York and San Francisco by approximately 8000 miles, saving both time and significant operational costs for the shipping industry.