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Trump demands free passage through the Panama and Suez Canals, criticizing poor management.

Trump demands free passage through the Panama and Suez Canals, criticizing poor management.

TraderKnowsTraderKnows
2025-04-28
Summary:Trump has demanded that American ships be allowed to pass through the Panama and Suez Canals for free, criticizing the lack of geopolitical influence of shipping routes without U.S. backing.

2025.3.12 Trump

Recently, Trump made fiery remarks once again, claiming that without the United States, the Panama Canal and the Suez Canal would "not exist," and demanded that American commercial and military ships be allowed to pass through these crucial global shipping lanes for free. He has instructed Secretary of State Rubio to "immediately" take measures to implement this demand.

According to The Guardian, Trump has publicly called for the U.S. to regain control over the Panama Canal multiple times, and this position has only intensified over time, escalating further last weekend. Trump tweeted: "Whether military or commercial, U.S. ships should be able to pass through the Panama Canal and Suez Canal for free." He emphasized that these waterways are crucial for global trade, significantly reducing transportation time and cost, and are key channels for the swift deployment of military forces globally, thus holding substantial geopolitical significance.

Trump's comments prompted a response from Panama. Without directly mentioning Trump, Panamanian President José Raúl Mulino stated that tolls for the Panama Canal are regulated by the independent Panama Canal Authority (ACP), and there are no contrary agreements or special arrangements. Meanwhile, when U.S. Defense Secretary Pete Hegseth visited Panama, he proposed that the U.S. would like to reach an agreement allowing American warships to have "priority and free" passage through the canal. This proposal was subsequently rejected by the Panamanian government.

Trump repeatedly criticized Panama's management of the canal and suggested plans to reclaim control of it, even not ruling out the use of military force. The Panama Canal was built by the U.S. in the early 20th century, and although it was handed over to Panama in 1977, the U.S. remains one of its primary users. Trump believes U.S. support for this channel is crucial, especially considering the safety and flow of global trade.

The Suez Canal also holds a significant position in global trade, especially as a key waterway connecting Europe and Asia. However, in recent years, threats from the Houthi forces to this channel have notably increased, particularly since the outbreak of the Israel-Gaza conflict, threatening shipping routes. Attacks by the Houthis force ships to reroute around the southern tip of Africa, leading to longer journeys and increased costs. Egypt also reported that in 2024, Suez Canal revenue decreased by 60%, with losses amounting to around $7 billion.

The Trump administration has intensified military strikes against the Houthi forces, with U.S. military actions occurring almost daily over the past few months. Trump stated that military operations will continue until the Houthi threat to global shipping is eliminated.

Trump's statements have again sparked discussions about the U.S.'s strategic position on these vital global waterways and whether stronger diplomatic policies should be used to enhance control.

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TraderKnows
Written byTraderKnows
Created date:2025-04-28 03:37
Last Updated:2025-04-28 05:16
Independent Analysis: Manually researched and fact-checked by the TraderKnows Compliance Team, based on public regulatory records.
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