Trump’s Public Fight With Panama

President-elect Donald Trump has ignited a global debate over the Panama Canal, signaling his intent to renegotiate the U.S. relationship with the vital waterway. Trump’s bold remarks have drawn international attention and sparked a tense exchange with Panamanian officials.

Trump Calls for Action

Speaking earlier this week, Trump claimed the U.S. is being “ripped off” by Panama and suggested the U.S. might demand the return of control over the canal if changes aren’t made.

“The United States built and financed it,” Trump stated, referring to the canal’s construction over a century ago. He criticized former President Jimmy Carter for “foolishly giving it away” through the 1977 Panama Canal Treaty, which transferred control to Panama in 1999.

While Panama’s President José Raúl Mulino defended his country’s ownership, Trump maintained his stance. “It was given to Panama and the people of Panama, but it has provisions,” Trump said. “You’ve got to treat us fairly, and they haven’t treated us fairly.”

Historical Context and Strategic Importance

The Panama Canal, a vital artery for global trade, handles 73% of its traffic to and from U.S. ports. It has been a cornerstone of American economic and military strategy since its completion in 1914. During World War II, the canal played a critical role in transporting supplies for Allied forces, with thousands of U.S. troops stationed there to ensure its security.

Van Hipp, chairman of American Defense International and a former deputy assistant secretary of the U.S. Army, drew parallels between Trump’s stance and President Teddy Roosevelt’s decisive actions to secure the canal’s construction.

“Trump is negotiating a new treaty for the Panama Canal, much like Roosevelt maneuvered complex international situations to make the canal a reality,” Hipp wrote in a column for Fox News.

Chinese Influence Sparks Concerns

Trump’s call for renegotiation comes amid growing alarm over China’s expanding influence in Central and South America. In 2017, Panama shifted its diplomatic recognition from Taiwan to Beijing, a move that deepened Chinese involvement in the region.

“China might embed surveillance technology within the canal’s infrastructure, which could be used to monitor U.S. naval and commercial movements,” warned Craig Fuller, CEO of FreightWaves. Such espionage risks, he added, could compromise U.S. military and logistical operations.

General Laura Richardson, commander of U.S. Southern Command, highlighted the threat earlier this year, telling Congress that “China is exercising our playbook of being present economically and equipping the United States’ hemispheric neighbors militarily.”

Trump’s Strategic Timing

The recent election of Panama’s new president, seen as ideologically aligned with Trump, could pave the way for renegotiations. Analysts suggest the timing is deliberate, with Trump aiming to leverage this alignment to secure a deal more favorable to the U.S.

A Complex Global Chessboard

Hipp noted that Trump faces a challenging foreign policy landscape, from China’s ambitions to Middle Eastern unrest and the ongoing Russia-Ukraine conflict. Yet, he expressed confidence in Trump’s ability to navigate these challenges.

“Yes, it is an international chess game, and thus far, America’s incoming commander in chief is playing it like the late World Chess champion Bobby Fischer,” Hipp concluded.

As Trump prepares to take office, his bold approach to the Panama Canal signals a willingness to reshape U.S. foreign policy, even at the risk of ruffling international feathers. Whether this strategy will yield the “better deal” Trump promises remains to be seen.