Is Trump seriously planning a military conquest of the Panama Canal?
In the weeks leading up to the inauguration, Donald Trump launched the Panama Canal into the national spotlight. The canal is one of the most important passages in the world, and its continued operation has been critical for both the U.S. military and economy since its construction.
Since America relinquished sovereignty of the canal, China has asserted its authority in the region. The Chinese Communist Party has been growing its influence in Panama and neighboring Latin American countries, convincing them to join their "Belt and Road Initiative," an effort to poise China as the main economic power in developing nations across the world. Panama in particular is quickly becoming a Chinese puppet state. There are currently over 200,000 Chinese living in Panama, a Chinese company runs two of the canal's five major ports, and another Chinese company provides telecommunication service for a large portion of the canal. The government of Panama has even gone as far as cutting diplomatic ties with Taiwan.
It's clear that the Panama Canal is under serious threat of falling into Chinese hands, but President Trump doesn't intend to let them move in. Here are the top three reasons we need the Panama Canal:
1. The canal was built by the U.S.
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Without the United States, neither Panama nor the Panama Canal would exist. In 1903, after Colombia refused to allow the U.S. to build a canal across the isthmus of Panama, President Teddy Roosevelt devised a controversial plan. He supported a Panamanian independence movement, which swiftly overthrew the local Colombian government. Meanwhile, he stationed a U.S. warship off the coast, preventing Colombia from sending military forces to retake Panama.
The moment Panama declared its independence, the U.S. recognized it and struck a deal with the new government: the U.S. would control the Canal Zone, while Panama would receive $10 million and an annual payment of $250,000. Construction of the canal took over a decade, cost $375 million, and resulted in thousands of American casualties, making it the most expensive U.S. construction project of its time.
Fast forward to 1964 when tensions between the U.S. and Panama over the canal erupted into a riot. President Lyndon B. Johnson decided it was time to transfer control of the canal to Panama. However, this proved more complicated than expected. In 1968, General Omar Torrijos, a known ally of Cuban dictator Fidel Castro, seized control of Panama in a coup. Negotiations over the Canal stalled, as many Americans opposed giving such an important asset to a controversial figure. It wasn’t until 1999, following the deployment of 27,000 U.S. troops to facilitate yet another change in power, that the Canal was officially handed over to Panama.
2. The canal is vital for the U.S. economy
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The U.S. relies heavily on the Panama Canal for commercial shipping. Between 13 and 14 thousand ships use the Panama Canal every year, which is roughly 40 percent of the global cargo ship traffic. Additionally, 72 percent of ships traversing the canal are either heading toward or leaving a U.S. port.
The time ships save using the Panama Canal reduces shipping costs massively. For example, when the canal first opened in 1922, it was estimated that a ship’s journey from Oregon to the UK, was shortened by 42 percent, reducing costs by 31 percent. If the Panama Canal was blocked or destroyed, or if American merchant vessels were denied passage, the effects on the U.S. economy would be tremendous.
3. The canal is a key defense point for the U.S. military
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Similarly, the canal is key to the U.S. military and national security. The canal shaves off approximately 8,000 miles of the voyage between the Pacific and the Atlantic. If U.S. Navy ships were denied access in a time of crisis, the extra time required to bypass the canal would be disastrous. Conversely, if the U.S. can keep the Panama Canal from being used by foreign aggressors, it would provide a massive advantage in future conflicts.
A foreign enemy could easily exploit the canal's current vulnerability. This was proven in 2021 when a cargo ship accidentally blocked the Suez Canal for a week, paralyzing global trade. Imagine China intentionally sabotaging the Panama Canal, considering it controls ports on both ends, owns a bridge that spans the Canal, provides its telecom services, and has the second-largest fleet of ships using the route.