Trump threatens to take back control of Panama Canal

Trump accused Panama of exploiting American vessels by imposing “exorbitant prices” to access the waterway, which serves as a vital shortcut between the Atlantic and Pacific Oceans. Without the canal, ships would face the arduous journey around South America’s treacherous Cape Horn.

Trump’s comments referenced the 1977 treaty that transferred control of the canal from the United States to Panama. The treaty, widely regarded as one of President Jimmy Carter’s landmark achievements, marked the end of US administration over the canal in the late 20th century.

However, Trump criticized Carter’s decision, saying, “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.”