President-elect Donald Trump issued a warning about the future of the Panama Canal in a pair of Truth Social posts on Saturday. Trump expressed his frustration with the current arrangement between the United States and Panama, calling it a "rip-off" due to what he perceives as exorbitant fees being charged to American vessels using the critical maritime corridor.
The United States is the top user of the Panama Canal, accounting for 72.5% of its traffic, according to data from the Panama Canal Authority. The authority charges varying tariff costs based on the size and purpose of the vessels, ranging from $0.50 to $300,000.
Trump criticized the 1979 treaty that transferred control of the canal to Panama in 1999, claiming that former President Jimmy Carter made a foolish decision by giving away the passage. He demanded that control of the canal be returned to the U.S., stating that the gesture of transferring control was meant to benefit both Panama and the U.S.
In his posts, Trump also expressed concern about China's growing presence at the Panama Canal. China is the second biggest user of the canal, but there have been no indications of their interest in purchasing the passage. However, a Hong Kong-based company does administer two of the canal's five ports.
The future of the Panama Canal and its relationship with the United States remains uncertain as Trump's warnings and demands raise questions about the long-standing agreement between the two countries. The implications of any potential changes to control of the canal could have significant impacts on global commerce and American military operations.