Overview

• President Donald Trump publicly called for free passage for U.S. military and commercial ships through the Panama and Suez canals, asserting the canals owe their existence to the United States.
• Trump directed Secretary of State Marco Rubio to address the toll-free transit issue immediately, signaling heightened U.S. pressure on Panama and Egypt.
• The U.S. recently secured Panama’s authorization to deploy troops near the Panama Canal, intensifying its strategic presence in the region.
• Houthi rebel attacks in the Suez Canal region have disrupted global trade and deepened Egypt’s economic crisis, which relies heavily on canal toll revenues.
• The Panama Canal, critical to global trade, accounts for 5% of maritime commerce, while the Suez Canal previously handled 10% before the recent disruptions.