Trump and the Panama Canal: What’s Going On?

The Eagle Report

May 13, 2025

So, guess what? President Trump has been talking about the Panama Canal again. He says the U.S. should “take back” control of it, claiming that Panama is charging American ships too much and that China has too much influence there. This has caused quite a stir, especially in Panama.

Back in December 2024, Trump suggested that the U.S. should reclaim the canal, which it handed over to Panama in 1999. He argued that the fees are unfair and that Chinese companies are gaining too much control. Panama’s President José Raúl Mulino responded by saying that Trump was “lying” and that Panama maintains full control over the canal.

In March 2025, a U.S. investment group led by BlackRock agreed to buy two major ports at either end of the canal from a Hong Kong-based company. Trump praised this move as a step toward reclaiming the canal. However, Panama insists that the canal itself remains under its sovereignty.

Meanwhile, thousands of Panamanians have protested against a new security agreement that allows U.S. troops access to certain facilities in Panama. Many see this as a threat to their national sovereignty, especially given Trump’s comments about the canal.

Trump has also suggested that American ships should be allowed to pass through the canal without paying fees. Panama’s canal authority has rejected this idea, stating that all ships are treated equally under international law.

So, what’s the takeaway? Trump’s comments have certainly stirred the pot, leading to protests in Panama and raising questions about U.S. intentions in the region. While the U.S. has increased its presence in Panama through new agreements and investments, Panama maintains that it retains full control over the canal.

It’s a complex situation, and it’s unclear how it will unfold. But one thing is certain: the Panama Canal remains a symbol of national pride for Panamanians, and any attempts to undermine their control over it are likely to be met with resistance.