Looking at the debate surrounding the recent Trump Panama Canal comments: Panama defends sovereignty while expat community distances itself from takeover demands.
President-elect Donald Trump’s demands for the return of the Panama Canal have sparked immediate reaction from Panama’s leadership and the American expat community, while online discussions suggest possible demonstrations outside the U.S. Embassy in Panama City today.
Sharp Words and Security Measures
Speaking over the weekend, Trump called the Panama Canal a “VITAL National Asset” due to its critical role in America’s economy and national security. He accused Panama of “ripping off” the United States, claiming “Our Navy and Commerce have been treated in a very unfair and injudicious way.” His complaints coincide with the Panama Canal Authority (ACP)’s planned fee increases for 2025.
The statements also come against a backdrop of Trump’s previous conflicts in Panama, leading to speculation of a possible personal grudge against the country. In 2018, Panamanian authorities removed the Trump Organization from the Trump International Hotel in Panama City following a legal battle over the property’s management. The 70-story tower, Trump’s first international hotel venture, had been plagued by controversies including bankruptcy issues and allegations of financial impropriety before Trump’s name was ultimately removed from the building.
Trump specifically criticized the 1977 Torrijos-Carter Treaties, claiming President Carter “foolishly gave it away, for One Dollar.” He cited the historical cost of construction, including “38,000 American men” who died from mosquito-borne diseases during the building phase under President Theodore Roosevelt’s administration.
Following Trump’s comments, there’s been some online speculation about demonstrations outside the U.S. Embassy in Panama City today. With the embassy closed for Christmas, American citizens should avoid possible demonstration areas, monitor local media, exercise caution when traveling, and keep emergency contacts readily available.
“The Panama Canal is considered a VITAL National Asset for the United States, due to its critical role to America’s Economy and National Security.
If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama… pic.twitter.com/LLUO358P9Y
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) December 22, 2024
Regional Power Dynamics
Trump’s statements touch on sensitive issues regarding China’s growing influence in Panama. Since cutting ties with Taiwan in 2017 under then-President Juan Carlos Varela, Panama’s relationship with Beijing has deepened significantly. At the time, Varela justified the decision by citing China’s position as the second most important canal user and its role in the Colón Free Trade Zone.
Chinese companies subsequently proposed several major infrastructure projects, including plans to establish an embassy overlooking the canal’s Pacific entrance – a location where Chinese flags would have been visible to passing ships before the Panamanian flag. While many of these projects were later scaled back under U.S. pressure, China’s economic presence remains substantial.
Recent trade data illustrates Panama’s complex position: the United States leads as Panama’s primary import partner with $2.7 billion in goods, while China dominates export destinations at $1.316 billion, followed by Japan ($442 million) and South Korea ($233 million). The United States ranks sixth on Panama’s export list at $148 million. ACP data confirms Trump’s assertion about canal usage, showing 73% of total tonnage in 2023 and 75.5% in 2024 connected to U.S. ports.
Official Response
President José Raúl Mulino of Panama issued a firm response on December 22, stating “Every square meter of the Panama Canal and its adjacent zone IS PANAMA’S, and will continue to be. The sovereignty and independence of our country are not negotiable.” He emphasized that the canal has no direct or indirect control from China, the United States, or any other foreign power.
Mulino explained that canal fees “are not arbitrary” but are set through public hearings, considering market conditions and maintenance costs. Starting in 2025, the ACP will raise transit reservation fees from $41,000 to $50,000 for medium-sized vessels and implement a new “Last Minute Transit Reservation” fee system. The changes follow a challenging year where drought conditions forced the canal to require advance booking, leading to an auction system where some vessels paid millions for priority passage. While expressing openness to dialogue with the incoming U.S. administration, he concluded firmly that Panama’s sovereignty over the canal “is not negotiable.”
Mensaje del Presidente José Raúl Mulino
Statement from President Jose Raul Mulino pic.twitter.com/BZmrihicLE— José Raúl Mulino (@JoseRaulMulino) December 22, 2024
Expat Community Reaction
Americans living in Panama have expressed varied reactions. “We feel disgusted that voters didn’t learn the first time around,” stated one resident, while others urge against blaming all Americans for rising tensions. One American resident’s social media post reflected this sentiment: “Any American expat in Panama who believes that the US should take back the Canal should pack up their belongings and move back to the states. You are an embarrassment to the rest of us American citizens who value the Panamanian people.”
The tensions reflect deeper concerns within Panama’s expat community about deteriorating U.S.-Panama relations. Long-term American residents have taken to social media to distance themselves from Trump’s statements, with many emphasizing their respect for Panama’s sovereignty and the existing treaty framework. One resident’s widely-shared post captured the prevailing sentiment: “We respect the sovereignty of the Panamanian government to own and run the canal.“
