The world is dictated by a powerful nation- the United States. The newly elected President- Donald J. Trump has been steering the world of economics with his headstrong ideologies, transformative reforms, and suggestions. Recently, Mr. Trump has used a series of threats to regain control of Canal de Panamá.
He has expressed several disagreements on the activities circulating in the Panama Canal. Let’s discover the Panama Canal’s significance, striking allegations made by Trump about what will happen if Trump takes over the Panama Canal, and how it can affect the economy.
Trump’s Plan to Control Panama Canal
Donald Trump is in talks to reassert the Control over the Panama Canal. Trump accuses Panama of overcharging Central American waterways. Trump adamantly says he would not let the canal fall into the wrong hands and warns of the potential Chinese influence on the passage.
Broadly Mr. Trump has accused the misuse of Panama Canal on the following grounds:
1. Panama Canal charging U.S. Vessels at exorbitant prices. He is aggrieved with the current scenario and believes the Panama Canal due to unfair exorbitant pricing has been ripped off like “we’re ripped off everywhere else”
2. Allowing Chinese soldiers to control the vital shipping route and overcharge American ships. He has given a clear chit-warning that if there is no price minimization before he resumes office, he will demand the United States control of the canal in full, quickly, and without question.
In an annual event, he commented about the Panama Canal. According to him- “It was given to Panama and the people of Panama but it has provisions”.
Since Panama was given under some provisions. However, if any morals or legal grounds are not followed properly, the USA may demand the Panama Canal be taken without any question.
Why is the Panama Canal famous?
The Panama Canal is a central waterway stretching across continents and serving as a vital link in global trade. This waterway connects North America and South America to Europe and Asia streamlining the movement of goods and reducing transit times. Panama Canal serves 36 new maritime routes, connecting 220 ports and 10 countries.
According to Canal De Panamá’s official website, this incredible waterway serves 180 maritime routes that link 1920 ports across 170 countries.
The primary trade routes utilizing the Panama Canal include:
- The East Coast of the U.S. to Asia (Far East)
- From the East Coast of the U.S. to the West Coast of South America
- Coast-to-coast trade within South America
- Europe to the West Coast of South America
- The East Coast of the U.S. to the West Coast of Central America
Chiefly, the following table showcases the list of the top 10 countries that extensively use the Panama Canal route. Topping the list is the United States, where nearly 160.12 Bn of shipments are from the Panama Canal, followed by China, Japan, Korea, and Spain respectively.
Top 10 Countries by Cargo

The Panama Canal serves as a vital link for global trade, facilitating the transit of a diverse array of goods. These range from essential commodities and raw materials to advanced manufactured and high-tech products.
Key categories of goods frequently utilizing this strategic waterway include:
- Containerized Cargo
- Coal
- Grains (Main Oats, Corn, Soybeans, Rice, Grains)
- Minerals & Metals
- Crude Oil and Fuels
- Chemicals
This broad spectrum of goods underscores the canal’s critical role in connecting markets and driving international commerce efficiently.
What Happens if Any Disruptions Occur in Panama Canal?
If at all USA re-asserts their hold at Panama Canal, chances for the following situation may arise:
- Shipping Delays
If any shipping delays may occur, there is a high chance that shipping may get hampered and that can disrupt the smooth flow of supply chains. Last year, several countries and commodities were affected by the severe drought situation in the Panama Canal. This hampered the shipments made to and fro in the Canal area.
- Global Impact
The Panama Canal is a vital trade route connecting the Atlantic and Pacific Oceans, used by ships from over 140 countries. Any conflict over control could result in delays, increased shipping costs, and global supply chain disruptions.
- Impact on U.S. Economy & Security
If the U.S. regained control, it could strengthen its strategic position in global trade, ensuring a steady flow of goods. However, the economic cost of a hostile takeover could outweigh the benefits due to legal, diplomatic risks.
The Panama Canal is a crucial point of trade for the world. Any tensions in this route can affect trade affairs. We at Market Inside are a curious bunch of professionals to keep you up-to-date about world affairs. Being the largest global trade data provider of 195+ countries, get a better worldview of the import and export, shipments, and transits happening worldwide.
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