Overview

• President Trump has called for toll-free passage for U.S. military and commercial vessels through the Panama and Suez canals, citing America’s historical role in their creation.
• Panama's President José Raúl Mulino stated that canal tolls are regulated by the autonomous Panama Canal Authority and that no agreement for free passage exists.
• Trump instructed Secretary of State Marco Rubio to formalize a free transit arrangement, intensifying U.S. diplomatic efforts with Panama and Egypt.
• The Trump administration has expressed concerns over Chinese influence in canal operations, with Panama recently withdrawing from China’s Belt and Road Initiative under U.S. pressure.
• Houthi rebel attacks in the Red Sea continue to disrupt Suez Canal traffic, reinforcing U.S. demands for secure and cost-effective maritime routes.