The Panama Canal is a symbol of sovereignty for Panama, and Trump’s proposal to take it by force mirrors the reckless empire-building of leaders like Putin, making America look like a bully on the world stage. Besides, seizing the Panama Canal would not make America stronger; it would make it weaker, as it alienates allies, violates international law, and casts the U.S. as a global pariah.
Donald Trump’s geopolitical ambitions are beginning to look like a reality TV show gone rogue. From his brazen musings about buying Greenland to his audacious hints at seizing the Panama Canal, the President-elect seems to have mistaken international diplomacy for a game of Monopoly. However, while Greenland was a nonstarter, the Panama Canal represents a far more serious and dangerous proposition. Apart from being an exercise in geopolitical machismo, Trump’s plan lacks strategic value, reeks of imperialist overreach, and mirrors the empire-building tactics of Vladimir Putin in Ukraine—a road that America must avoid at all costs.
When President Jimmy Carter signed the Torrijos-Carter Treaties in 1977, transferring control of the Panama Canal to Panama by 1999, it marked a watershed moment in U.S.-Latin American relations. Carter argued that relinquishing the canal would foster goodwill, open global trade opportunities, and affirm America's moral leadership. Indeed, since the handover, the canal has been efficiently managed by the Panama Canal Authority (ACP), generating $2.5 billion annually for Panama’s government and facilitating 5% of global maritime trade. The U.S., which retains preferential access for military vessels, has benefited from the canal's neutrality without the burden of direct management.
Trump’s complaints that Americans are being “ripped off” by transit fees fail to hold water. Fees are set based on demand and usually account for just 5% of a ship’s journey costs. A typical transit fee is less than $400,000, while U.S. Navy vessels have paid a mere $17 million in transit fees over the past nine years—a figure so minuscule it has been described as “budget dust.” Moreover, Trump’s claim that “Chinese soldiers” are operating the canal is patently false. The canal remains under Panama’s sovereign control, and while China has increased its investments in Panama, including major infrastructure projects, there is no evidence of a military presence or control over the canal.
Trump’s fixation on the Panama Canal seems to echo his earlier obsession with Greenland, another ill-fated idea that was widely criticized as absurd. Both proposals reveal a pattern of treating international relations as real estate transactions, devoid of nuance or respect for sovereignty. In the case of the Panama Canal, the parallels to Vladimir Putin’s annexation of Crimea and his ongoing invasion of Ukraine are troubling. Just as Putin sought to restore Russia’s imperial glory by forcibly redrawing borders, Trump’s proposal to seize the canal smacks of a similar desire to reclaim a bygone era of American dominance. Such actions would not only violate international law but also undermine America’s credibility as a defender of democratic values and the rule of law.
The strategic benefits of seizing the canal are questionable at best. The U.S. already enjoys preferential access for military vessels and has alternative shipping routes through its robust network of ports and railroads. The economic cost of forcibly taking the canal would far outweigh any potential savings in transit fees, especially when considering the inevitable backlash from Panama and the international community. Moreover, the canal’s significance as a trade route has diminished somewhat with the expansion of alternative shipping routes, such as the Suez Canal and the Arctic's Northern Sea Route.
Panama, for its part, has made significant efforts to maintain strong ties with the U.S. despite its growing relationship with China. In 2024, President José Raúl Mulino awarded the first contract for a high-speed rail project to an American firm, signaling his commitment to fostering U.S. investment. Additionally, Panama has cooperated with U.S. efforts to curb migration through the Darien Gap and has resisted some Chinese projects, such as a proposed embassy near the canal’s entrance. However, forcing Panama to sever ties with China entirely would be both unrealistic and counterproductive, given China’s role as a major trading partner and investor in the region.
Trump’s rhetoric risks undoing decades of progress in U.S.-Panama relations. Since the handover of the canal, Panama has emerged as a stable and prosperous democracy, with the canal serving as a cornerstone of its economy. Any attempt to forcibly take control of the canal would not only violate Panama’s sovereignty but also destabilize the region, alienating allies and emboldening rivals. It would also set a dangerous precedent, opening the door for other powers to justify similar actions under the guise of protecting their interests.
The Panama Canal is not merely a strategic asset; it is a symbol of Panama’s independence and national pride. Forcibly seizing it would be akin to tearing the heart out of the nation’s identity, sparking widespread resistance and international condemnation. The canal’s neutrality and accessibility are enshrined in international law, and any violation of these principles would erode the very foundations of the global order that the U.S. has long championed.
Trump’s proposal also underscores a troubling trend in his approach to foreign policy: a reliance on bluster and brinkmanship over diplomacy and dialogue. By framing the canal issue as a zero-sum game, Trump risks alienating allies, undermining global stability, and damaging America’s reputation as a trusted partner. As the saying goes, “He who rides the tiger cannot dismount.” Pursuing this reckless course could entangle the U.S. in unnecessary conflicts, with far-reaching consequences for its economy and security.
At a time when the world faces complex challenges, from climate change to economic inequality, the last thing the U.S. needs is a return to the imperialist policies of the past. Instead of flexing its muscles, America should focus on strengthening its alliances, promoting fair trade, and addressing the root causes of global instability. The Panama Canal, a testament to international cooperation and mutual benefit, should serve as a reminder of what can be achieved when nations work together toward common goals.
Trump’s geopolitical gambits may grab headlines, but they do little to advance America’s interests or enhance its standing in the world. The Panama Canal is a case in point: a misguided and unnecessary provocation that risks more harm than good. If Trump truly wants to “Make America Great Again,” he would do well to remember that greatness is not measured by the size of one’s empire but by the strength of one’s principles. As Panama’s President José Raúl Mulino aptly put it, “Every square metre of the canal belongs to Panama.” And perhaps that’s exactly where it should stay.
If America wants to flex its muscles, perhaps it should start by lifting the weight of its own outdated ambitions. After all, in the modern world, might does not make right—it only makes a mess.