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Trump Says US Ships Should Pass Panama and Suez Canals Without Fees

Trump Says US Ships Should Pass Panama and Suez Canals Without Fees
Image Source: Getty
  • Trump said US commercial and military ships should pass freely through the Suez Canal and Panama Canal without paying fees.
  • The US built the Panama Canal but handed it to Panama in 1999; it never invested in the Suez Canal.
  • Trump’s focus on Chinese shipping ties into broader efforts to revive US shipbuilding and counter China’s maritime dominance.

Suez Canal

What happened? US President Donald Trump said that commercial and military American ships should be allowed to go through the Panama and Suez Canal free of charge. 

He claimed that “Those Canals would not exist without the United States of America.” 

Suez Canal The Suez Canal is an artificial waterway in Egypt extending from Port Said to Suez. It connects the Mediterranean Sea with the Red Sea.

It is important to note that the US did not invest in the Suez Canal or its expansion.

The Suez canal is considered one of Egypt’s most important sources of national income and is one of Egypt’s most important sources of hard currency. It also generates job opportunities, economic diversification and facilitates international trade.

Panama Canal

Panama Canal The U.S. had completed the construction of the Panama Canal in the early 20th century. However, it handed over control of the strategic waterway  to Panama in 1999. 

The Panama Canal cuts across the narrowest part of the isthmus between North and South America. This allows ships to move more quickly between the Atlantic and Pacific oceans. Moreover, the canal carried through it about 40% of U.S. container traffic each year.

According to Reuters, Trump has said repeatedly that he wants to “take back” the canal. For instance, before taking office, he told reporters that he would not rule out using economic or military force to regain control over the canal. In February, Panama had agreed to allow free passage for US warships.

Chinese Focus Previously, Trump began pushing for a Chinese port operator from the Panama Canal. His focus in general with tariffs and proposed fees at US ports has been on Chinese commercial shipping and shipbuilding. This is because he intends to promote the revival of US shipbuilding, arguing that China’s dominance harms US interests.

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