Trump's Panama Canal Remarks Strain U.S.-Panama Relations

President-elect Trump’s demands to reclaim the canal and accusations of Chinese influence have provoked backlash from Panama and raised geopolitical concerns.

President-elect Donald Trump has called for the U.S. to reclaim the Panama Canal, citing concerns over rising transit fees and alleged Chinese influence in the region.
Panama’s President José Raúl Mulino firmly rejected Trump’s statements, emphasizing the canal's sovereignty and neutrality under the 1977 Torrijos-Carter Treaties.
Trump’s claims of Chinese military involvement in the canal are unsubstantiated, though Chinese investments in Panamanian infrastructure have increased in recent years.
The Panama Canal Authority has raised transit fees due to drought-related challenges, with fees remaining comparable to other major canals like the Suez.
Critics argue that Trump’s rhetoric risks alienating Panama and undermining U.S. influence in Latin America, while his ambassador pick, Kevin Cabrera, faces scrutiny for his lack of diplomatic experience.