Trump’s request targets two of the world’s most critical maritime chokepoints—the Panama and Suez Canals. In a recent statement, Trump claimed that both canals owe their existence to American contributions and should not impose tolls on U.S. vessels. He instructed Secretary of State Marco Rubio to address this matter promptly, urging for immediate diplomatic measures to ensure that U.S. ships can pass freely through these key passages.
The Panama Canal, a critical shipping route connecting the Atlantic and Pacific Oceans, has been a point of contention in previous years. Trump has long advocated for greater U.S. control over the Panama Canal, citing American involvement in its construction and historical influence in the region. His recent move to focus on the Suez Canal further underscores his strategy to enhance U.S. influence over global trade routes.
Panama Responds: No Exemption on Fees
Panama, however, has pushed back against Trump’s demands. President Jose Raul Mulino made it clear that the Panama Canal Authority, an independent body overseeing the canal, is responsible for setting the toll fees. Mulino emphasized that no agreements exist that would exempt U.S. ships from paying these fees.
The Panama Canal has been a vital international waterway since its opening in 1914, but its operation has always been under Panama’s jurisdiction following the 1999 handover from the United States. Despite Trump’s insistence on American exemptions, Panama’s government has maintained that any fee adjustments must align with the canal’s operational needs and financial sustainability.
Suez Canal Crisis and U.S. Military Presence
The Suez Canal, a vital artery for global shipping between the Mediterranean and the Red Sea, is also under pressure. Managed by Egypt, the canal has faced significant disruption due to Houthi rebel attacks in the Red Sea. These attacks have led many ships to reroute, reducing traffic through the canal and severely affecting Egypt’s revenue from canal tolls. In recent months, Egypt has seen a 60% drop in canal revenues, amounting to a $7 billion loss.
In response, the United States has increased its military presence in the region. Since January 2024, U.S. forces have launched frequent strikes on Houthi targets, aiming to protect vital shipping lanes. These operations have become more frequent under Trump’s leadership, with almost daily military actions aimed at neutralizing the threat to international maritime trade.
Trump’s Military Strategy to Protect Global Trade
Trump’s administration has prioritized ensuring the security of global shipping routes, particularly those passing through the Suez Canal. With tensions rising in the Red Sea, Trump has vowed to continue military operations until the Houthi rebels no longer pose a threat to global maritime traffic.
The U.S. military’s involvement in the region has become a focal point of Trump’s broader foreign policy strategy, which seeks to protect American interests and maintain global trade stability. Trump’s aggressive stance on securing the Suez Canal and the Panama Canal aligns with his broader “America First” approach, which emphasizes the protection of U.S. assets and strategic interests.
Diplomatic and Military Tensions Rise
As Trump presses for free passage through the Panama and Suez Canals, the growing friction between the U.S. and both Panama and Egypt is escalating. Panama’s firm stance on canal fees and Egypt’s response to the U.S. military presence in the region suggest that Trump’s demands may face significant opposition.
The issue raises broader questions about U.S. influence over global trade routes and the extent to which the U.S. should be able to dictate terms for access to vital international waterways. While Trump’s administration has argued that such access is essential for maintaining global shipping stability, critics argue that these actions could undermine international agreements and strain diplomatic relations.
As the U.S. seeks to secure free access through the Panama and Suez Canals, the growing friction with Panama and Egypt signals a new chapter in the geopolitics of global trade. Trump’s push for toll exemptions and military actions to safeguard shipping lanes highlights his administration’s emphasis on securing U.S. interests. However, these moves also bring into focus the delicate balance of international diplomacy and the potential consequences of unilateral decisions in crucial global trade regions.
