In a bold and controversial inauguration speech on Monday, President Donald Trump vowed to take back U.S. control of the Panama Canal, invoking the 19th-century concept of “Manifest Destiny” to outline his vision for territorial and space expansion during his second term.
Doubling down on earlier threats, Trump accused Panama of violating agreements tied to the 1999 transfer of the canal and claimed it had ceded operational control to China—allegations Panama has repeatedly denied.
“We didn’t give it to China. We gave it to Panama, and we’re taking it back,” Trump declared, without providing specifics on when or how this would be achieved.
His refusal to rule out military intervention has drawn criticism across Latin America, including from U.S. allies.
Panama’s President Jose Raul Mulino swiftly responded on social media, reaffirming that the canal is under Panamanian control and operates responsibly for global trade, including for the United States.
“The canal is and will continue to be Panamanian,” Mulino wrote on X.
Trump’s remarks signal an escalation of his recent rhetoric advocating for territorial growth, including proposals to acquire Greenland and integrate Canada into the U.S.
These statements have sparked skepticism among analysts, with some suggesting they may serve as extreme bargaining positions rather than concrete policy goals.
In his address, Trump emphasised a return to expansionism, framing it as integral to America’s future.
“The United States will once again consider itself a growing nation — one that increases our wealth, expands our territory, and carries our flag into new and beautiful horizons,” he said, later pledging to “plant the stars and stripes” on Mars as part of his space exploration agenda.
Trump criticised the 1977 treaties that facilitated the canal’s transfer to Panama, calling the agreement a “foolish gift” that has harmed U.S. interests.
“We have been treated very badly from this foolish gift that should have never been made, and Panama’s promise to us has been broken,” he asserted, claiming that U.S. ships face unfair treatment and excessive fees.
Panama insists its tolls are equitable and denies Chinese control of the canal. While Hong Kong-based CK Hutchison Holdings manages two nearby ports, the canal itself remains under Panamanian administration.
The 82-kilometer (51-mile) waterway is critical to global trade, facilitating the transit of goods between the Pacific and Atlantic Oceans. It plays a vital role in U.S. imports of goods like cars and exports of commodities such as liquefied natural gas.
Trump’s rhetoric has raised concerns across Latin America and beyond, with critics warning that aggressive moves to regain the canal could destabilise the U.S.-Panama relations and undermine trust among allies in the region.
Meanwhile, Panama’s maritime authority announced an audit of the Panama Ports Company, a subsidiary of CK Hutchison, shortly after Trump’s speech, a move likely to draw further international scrutiny.
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