Trump Wants to ‘Take Back’ the Panama Canal. Why That’s Not So Simple

President Donald Trump has called for the US to retake control of the Panama Canal unless the cost of passage for American naval and merchant ships is slashed or even eliminated. Trump’s refusal to rule out the use of force is a throwback to the 19th century era of gunboat diplomacy. While it remains unclear whether Trump is simply posturing, his demand has jolted Latin America, which is less afflicted by territorial disputes than regions such as the Middle East and Asia. It shows a willingness to flout treaties and anger allies to further US interests. It’s also a way of confronting China, which Trump has falsely said is operating the Panama Canal.

The Panama Canal is an important waterway that handles roughly 3% of global seaborne trade. It revolutionized maritime shipping when it opened in 1914, shortening journeys by removing the need to go around South Africa’s Cape of Good Hope or through the Straight of Magellan, a narrow passage on the tip of South America between the Atlantic and Pacific Oceans.