Explained: Donald Trump's Big Warning Over Panama Canal Amid Rising Chinese Influence

The thought of China is haunting Donald Trump who is troubled over Beijing's growing influence right under US' tail - the Panama Canal - a bridge connecting the Atlantic Ocean and the Pacific Ocean through strategically located Panama, the country which links North and South America.

US President-elect Trump, who is always ready to threaten others with tariffs, is also perturbed by Panama charging "excessive tariffs" for the use of the Panama Canal. So unsettled is he, by the combination of these two factors, that Mr Trump has openly declared that the US might consider taking control of the Panama Canal.

Writing about his concerns on his social media platform Truth Social, Donald Trump warned that he would never let the Panama canal fall into the "wrong hands." Reminding the government in Panama that the canal was originally built by the United States more than a century ago, Mr Trump wrote "It was solely for Panama to manage, not China, or anyone else".

He further re-posted a video of himself titled "We would and will NEVER let it fall into the wrong hands!"

BRIEF HISTORY OF THE PANAMA CANAL

Till the early 20th century the shortest way to reach the Pacific Ocean from the Atlantic Ocean and vice versa was to either sail around Cape Horn located in Chile at the southern tip of South America or to sail through the Strait of Magellan - also at the southern end of South America - in Chile. Both meant sailing around the entire continent of South America and nearly reaching Antarctica before sailing back up either into the Pacific or the Atlantic - this was neither economical, nor efficient.

After much thought, research and survey, a narrow, but possible way was discovered cutting across the Isthmus of Panama. However, there was a herculean challenge to be overcome in order to achieve that. The waterway was at different levels and there was no way a ship could either climb or descend where there was a sudden change in topography. For the waterway in the isthmus to be converted into a man-made canal, it would require an engineering marvel - one that was both inconceivable and unheard of in the early 20th Century.

The United States of America was the only nation at the time that had the technical knowledge and expertise to be able to make it happen. And so, in May, 1904 - less than a year after Panama declared Independence from Colombia in November, 1903, the US began the construction of the Panama Canal. A treaty was signed between the United States and Panama under which the canal would be constructed and managed by the US. After 10 years of engineering works round-the-clock, the Panama Canal became a reality in August, 1914 with the SS Ancon becoming the first ship to pass through the canal.

The US continued to control and operate the canal and its surrounding areas until a new agreement was signed between Panama and the US called the Torrijos-Carter Treaty in 1977. This provided for the handover of the canal to Panama after joint operations for nearly two decades. The Panamanian government took full control of the canal in 1999.

DONALD TRUMP vs PANAMANIAN PRESIDENT JOSE MULINO

Apart from the warning that the US would never allow operations of the Panama Canal to be handed over to another country amid China's growing influence and muscular posturing globally, Donald Trump expressed his displeasure over "very high" tariffs being charged by Panama.

Writing on Truth Social, Mr Trump said "The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the US."

"It was not given for the benefit of others, but merely as a token of cooperation with us and Panama. If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without question," Mr Trump added.

Hours after Donald Trump's warning, the Panamanian government responded, though without naming the US President-elect. Panama's President Jose Raul Mulino dismissed the threats by posting a video on social media platform X that "Every square meter of the Panama Canal and its adjacent areas belongs to Panama and will continue belonging to Panama."

"The canal has no direct or indirect control from China, nor the European Union, nor the United States or any other power," President Mulino said, adding that "As a Panamanian, I reject any manifestation that misrepresents this reality." His video message was in Spanish.

🇵🇦 Mensaje del Presidente José Raúl Mulino 🇵🇦 pic.twitter.com/DMXU8qAuNT

— José Raúl Mulino (@JoseRaulMulino) December 22, 2024

President Mulino also said he hopes to have "a good and respectful relationship" with the incoming Trump administration. Donald Trump responded soon after the posts by the Panamanian President but kept everyone guessing when he wrote "We'll see about that!".

Meanwhile, amid the power tussle between the US and China in terms of its military and naval prowess, it is important to note that China now has the world's largest navy, surging past the United States. China has a declared fleet size of more than 370 ships and submarines. This is significantly larger than the fleet size of the US Navy, which is 290 ships and submarines.

The Panama Canal is among the most crucial waterways of the world in terms of trade and commerce, and freedom of navigation of the seas has been among the topmost priorities of the democratic world, and a cornerstone of its policy.