President-elect Donald Trump has repeatedly voiced his intention to take the Panama Canal back under U.S. control over the past weeks. And while some analysts interpret the statements as an attempt to pressure the country into lowering canal fees for U.S. goods, former U.S. officials are warning that the rhetoric could strain relations at a time when China is expanding its influence in Panama and Latin America in general.
The Panama Canal was constructed by the U.S. in the early 20th century and remained under U.S. control until 1999 when it was fully transferred to Panama. Since then, the Panama Canal Authority has managed the waterway, overseeing significant expansions to accommodate larger cargo vessels. The canal is a key global trade hub, particularly for shipments between the U.S. and East Asia.
