US President Donald Trump has once again put China on notice, declaring that Washington will not allow Beijing to seize control of the Panama Canal under any circumstances. Since the start of his second term, Trump has made it clear that he intends to put America first and is willing to fight on any front to protect that position. This time his target is one of the world's most vital waterways, the Panama Canal, and the country he considers his biggest rival, China.
A direct warning from North Dakota
Calling the Panama Canal the world's most important trade route, Trump warned that it could soon turn into a fresh flashpoint between the United States and China. Speaking at an event in North Dakota, he took direct aim at Beijing, saying, "China is looking to take over the Panama Canal. We will never let that happen. It's ours, we built it, and we will take it back if we have to." Trump also described the canal as one of the most expensive and profitable assets in the world.
Why the Panama Canal matters so much
The Panama Canal is an 82 kilometre waterway connecting the Atlantic and Pacific Oceans. Thousands of ships pass through it every year, carrying a huge share of global trade, and the route saves vessels thousands of miles of travel. That is precisely what makes it so valuable. The United States is its single biggest user, with China ranking second.
If China were to somehow gain control of the canal, its grip over global supply chains would grow significantly. Trump claims Chinese companies already operate ports at both ends of the canal, something he views as a major strategic risk. Washington sees this as Chinese encroachment into what it regards as its traditional sphere of influence, the Western Hemisphere.
After Venezuela, Iran and China are next
Trump considers the American operation in Venezuela, where he succeeded in toppling Nicolas Maduro's government, a complete success. He now appears to be applying a similar pressure strategy against Iran, and it is against this backdrop that his stance on China has hardened as well. Taking a swipe at Iran, he said, "Iran is becoming a bit like Venezuela, which used to be a profitable country. We brought Venezuela under control, and we are doing the same with Iran."
Could the Panama Canal turn into a new Hormuz
If the dispute deepens, the Panama Canal could turn into a new flashpoint much like the Strait of Hormuz. Roughly 20 percent of the world's oil passes through Hormuz, a region where tension between Iran and the US-Israel axis is a near constant. The Panama Canal, too, is a major chokepoint for global trade. If the standoff between the US and China intensifies here, it could disrupt the movement of commercial ships, push up the cost of goods, and shake the wider global economy.
Trump's aggressive posture also signals that the United States is in no mood to tolerate any foreign power operating within its traditional zone of influence. That said, directly confronting or provoking China will not be easy for Washington, but given Trump's track record so far, it is hard to say for certain what comes next.
The engineering marvel behind the canal
The Panama Canal does not connect directly to the open sea. Instead, ships are raised by roughly 26 metres inside the Gatun Lock by filling it with water, before being lowered back down to sea level on the other side. Vessels take three stages to cross the canal. Linking the Atlantic and Pacific Oceans, the canal is widely regarded as an engineering marvel, built around three locks that carry ships from the Pacific Ocean through to the Atlantic.
How the United States originally took control of the canal
The story of the Panama Canal dates back to the start of the 20th century. Theodore Roosevelt, who served as US President from 1901 to 1909, turned it into one of America's biggest ambitions. France had already attempted to build the canal earlier and failed.
In 1903, Roosevelt tried to strike a deal with Colombia, of which Panama was then a part, but Colombia refused. Roosevelt then threw his support behind Panama's independence movement, and with American warships present, Panama broke away from Colombia.
Under the Hay-Bunau-Varilla Treaty signed with the newly formed Panamanian government, the United States secured a 10 mile wide strip of land. In return, America paid 10 million dollars upfront along with an annual rent. Construction of the canal ran from 1904 to 1914. Roosevelt himself visited the site in 1906 and had his photograph taken standing on an excavation machine.
The Panama Canal opened to traffic in 1914, and Roosevelt proudly declared that he had built the canal. The United States retained full control over it until 1999. Under President Jimmy Carter, the canal was handed over to Panama through the Torrijos-Carter Treaty, though the US secured a guarantee of its neutrality.
Falling water levels have only raised the stakes
Declining water levels have made the canal's strategic importance even greater. The contest now is not just over control of the canal but over water itself. Even so, the Panama Canal remains the heartbeat of the global economy today, and its stability is directly tied to the world's economic security.
The thinking behind Trump's claim
Trump's claim rests on both America's historical pride and the present-day situation. He argues that since the United States built the canal and poured blood and sweat into it, the right to it belongs to America as well. He views China's growing presence there as both an economic and a strategic threat. Experts believe the standoff between the US and China over the Panama Canal could escalate further, though it could still be resolved through diplomacy. If tensions do rise, global trade along with oil and other essential goods prices will feel the impact directly. Trump's remarks appear to be part of a larger strategy not just confined to Panama, but aimed at restoring American influence across the whole of Latin America.
