As the dawn of a new presidential era approaches, President-elect Donald Trump has hinted at a potential demand for the return of the Panama Canal to the United States.
This move, he suggests, is to prevent the strategic waterway from "falling into the wrong hands." The statement comes as Trump prepares to assume the mantle of leadership in the coming year.
According to The Post Millennial, Trump took to Truth Social, where he emphasized the importance of the Panama Canal to the United States. He stated, "The Panama Canal is considered a VITAL National Asset for the United States, due to its critical role to Americas Economy and National Security.
A secure Panama Canal is crucial for U.S. Commerce, and rapid deployment of the Navy, from the Atlantic to the Pacific, and drastically cuts shipping times to U.S. ports." He further highlighted that the United States is the primary user of the Canal, accounting for over 70 percent of all transits.
Trump also criticized former President Jimmy Carter for "foolishly" giving away the canal for a mere dollar during his term. He expressed his dissatisfaction with the fees charged by Panama, describing them as "ridiculous" and a "rip-off" of the United States. He stated, "Our Navy and Commerce have been treated in a very unfair and injudicious way.
The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S. This complete 'rip-off' of our Country will immediately stop."
In his statement, Trump underscored the United States' vested interest in the canal's secure, efficient, and reliable operation. He warned, "We would and will NEVER let it fall into the wrong hands! 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. To the Officials of Panama, please be guided accordingly!"
Recent developments have seen ocean carriers planning to implement surcharges for those utilizing the canal, as reported by Supply Chain Dive. This move is in response to the canals booking reservation system. Despite droughts plaguing the canal, conditions have been improving with the implementation of the booking system, as per Supply Chain Brain.
The surcharges, set to take effect on January 1, 2025, include $40 per twenty-foot equivalent unit (TEU) for all cargo types from Southeast Asia to the US East and Gulf Coast, and $150 per TEU for South America West Coast to various destinations, including the US East Coast and Canada.
This latest move by Trump aligns with his pattern of seeking to improve trade conditions for the United States. As he prepares to step into the White House, it remains to be seen how this potential demand for the return of the Panama Canal will unfold and its implications for the United States' international relations and trade dynamics.
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