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Trump Assigns Rubio Task: Secure Free Passage for U.S. Ships Through Panama and Suez Canals

Monday, April 28, 2025 by Ernesto Alvarez

President Donald Trump of the United States has proposed that American vessels, both military and commercial, should navigate the Panama and Suez Canals without incurring any fees. In a post on his social media platform, Trump asserted that these vital waterways would not exist without the historical support of the U.S. He instructed Secretary of State Marco Rubio to act swiftly to address this issue, emphasizing the historical arguments put forth by his administration.

For several months, Trump has been advocating for renewed U.S. influence over the Panama Canal, and he has now extended his demands to include the strategically important Suez Canal in Egypt. While the United States was not involved in the construction of the Suez Canal, Trump's statement can be seen as a nod to the historical and ongoing role of Washington in safeguarding strategic global trade routes.

Analysts suggest that Trump's remarks highlight more of a stance on U.S. military and geopolitical influence in ensuring the secure operation of these canals, rather than a literal claim to their construction. His comments come amid global tensions affecting maritime routes, especially following attacks by Yemen's Houthi rebels, which have forced traffic to be rerouted along longer and more costly paths.

Panama's President José Raúl Mulino has reminded the public that the canal's tolls are regulated by the Panama Canal Authority (ACP), an independent entity, and stressed that "no agreement exists" that would allow for exemptions. Concurrently, U.S. Secretary of Defense Pete Hegseth visited Panama City, raising the possibility of negotiating free passage for warships and even hinted at the return of U.S. troops to "secure" the canal, a proposal immediately rejected by Panamanian authorities.

Economic Impact of Canal Operations

The Suez Canal has seen a 60% drop in revenue in 2024 due to security risks in the Red Sea. Egypt is grappling with a $7 billion loss, exacerbated by the need to reroute maritime traffic to longer pathways. In response to Houthi attacks, the U.S. military has ramped up its operations since January 2024, with Trump pledging to continue this campaign until the safety of international commercial navigation is assured.

Trump's Pressure on the Panama Canal

Trump's recent demand for free transit through the Panama and Suez Canals is part of a broader diplomatic push that began months ago, particularly focused on control over the Panama Canal. Since late 2024, Trump has reiterated his desire for the U.S. to regain influence over this interoceanic passage, citing national security concerns and China's increasing role in its operational surroundings.

In March 2025, Trump formally tasked Secretary of State Marco Rubio with the mission to "reclaim" the canal, describing it as a priority for his administration. Although his statement was made partially in jest, suggesting that a failure would be Rubio's fault, it underscored the seriousness with which his government is tackling the issue. Trump argued that the 1977 handover of the canal to Panama was an "unjustified surrender" and accused China of "violating and manipulating" the original agreement.

The Panamanian government has responded firmly, with President José Raúl Mulino publicly rejecting Trump's claims and reaffirming that the canal is and will remain Panamanian. He also dismissed any negotiations about its reclamation during bilateral talks with the United States.

Meanwhile, the Trump administration has hailed as a "first step" the acquisition of key ports near the canal by the American company BlackRock, following its purchase from the Hong Kong conglomerate CK Hutchison. This move is aimed at reducing Chinese influence in the region. Trump's campaign regarding the Panama Canal, now coupled with his demands concerning the Suez Canal, signals a broader effort to reassert U.S. dominance over strategic global trade routes.

Questions on U.S. Influence Over Canal Operations

What are Trump's demands regarding the Panama and Suez Canals?

Trump has demanded that U.S. ships, both military and commercial, should be allowed to transit the Panama and Suez Canals without any fees, citing historical U.S. support for these waterways.

How has the Panamanian government responded to Trump's demands?

Panama's President José Raúl Mulino has strongly rejected Trump's claims and reaffirmed that the Panama Canal is and will remain under Panamanian control, denying any negotiations on its reclamation.

Why is the Suez Canal's revenue declining?

The Suez Canal's revenue has declined by 60% in 2024 due to increased security risks in the Red Sea, forcing ships to reroute through longer and more expensive paths.

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