In a fiery Christmas Day post on Truth Social, U.S. President-elect Donald Trump claimed that Chinese soldiers are operating in the Panama Canal. He further threatened to take the canal back under U.S. control, accusing Panama of unfairly overcharging shipping fees.
“Merry Christmas to all, including to the wonderful soldiers of China, who are lovingly, but illegally, operating the Panama Canal,” Trump wrote in his post.
Trump also labeled Panama’s shipping tolls as “ridiculous” and “highly unfair.” He warned that if shipping rates are not lowered, “we will demand that the Panama Canal be returned to us, in full, quickly and without question.”
How Did Panama Respond to Trump’s Claims?
Panamanian President José Raúl Mulino was quick to refute Trump’s claims, calling them “nonsense.” In a press conference in Panama City, Mulino stated:
“There is not a single Chinese soldier in the canal. The canal is Panamanian and belongs to Panamanians. There’s no possibility of opening any kind of conversation around this reality.”
Mulino also dismissed the idea of reducing tolls for U.S. ships, emphasizing Panama’s sovereignty over the vital shipping route that connects the Atlantic and Pacific oceans.
What Is China’s Role in Panama?
After establishing diplomatic ties with China in 2017, Panama has fostered strong economic and political relations with the Asian superpower. Mulino described these ties as “respectful, well-managed… in terms of what is in the interest of both countries.”
China is the second-largest user of the Panama Canal after the U.S. and has significant investments in the Central American nation. CK Hutchison Holdings, a Hong Kong-based company, manages two ports located at the canal’s entrances.
Who Did Trump Nominate as U.S. Ambassador to Panama?
Adding to the diplomatic tension, Trump announced on Christmas Day his nomination of Kevin Marino Cabrera, a Republican commissioner from Miami-Dade County, as the next U.S. ambassador to Panama.
“Kevin will do a fantastic job representing our Nation’s interests in Panama!” Trump declared in another Truth Social post. Cabrera, a loyal Trump ally, worked on the former president’s 2020 campaign and is Florida’s representative to the Republican National Committee.
What Is the History of U.S. Control Over the Panama Canal?
The Panama Canal, a 51-mile (82-km) engineering marvel completed in the early 20th century, was under U.S. control for much of its history. Treaties signed in 1977 gradually transferred control of the canal to Panama, culminating in full Panamanian sovereignty in 1999.
Despite Trump’s claims, President Mulino reiterated that the canal’s ownership is non-negotiable.
Why Have Canal Transit Costs Increased?
Transit costs through the canal have risen over the past year due to a historic drought, as reported by shipping industry publications. The canal remains a critical global shipping route, handling around 14,000 vessels annually. These include container ships transporting goods such as cars and natural gas, as well as military vessels.
What Other Controversies Has Trump Raised?
In his Christmas Day social media spree, Trump also repeated his controversial suggestions that the U.S. annex Greenland and Canada. While it remains unclear how serious he is about these territorial ambitions, his rhetoric has drawn widespread attention.
As Trump prepares to take office, his claims and policies regarding Panama have raised questions about U.S. foreign policy and the future of the Panama Canal. For now, Panama has firmly rejected any interference in its sovereignty over the canal.
