Overview

• President Trump declared that U.S. military and commercial vessels should travel through the Panama and Suez canals without charge.
• The directive tasks Secretary of State Marco Rubio with formalizing the policy and addressing the matter diplomatically.
• The Panama Canal, built by the U.S. in the early 20th century and transferred to Panama in 1999, handles 40% of U.S. container traffic annually.
• Trump has previously criticized the 1977 Torrijos-Carter Treaties and expressed a desire to 'take back' the canal, including potential economic or military measures.
• Panama continues to assert its sovereign control over the canal under existing treaties, resisting U.S. demands for free passage.