Trump Demands Free Passage for U.S. Ships Through Panama and Suez Canals
In a striking new demand, former President Donald Trump called on Saturday for American military and commercial ships to be allowed free passage through two of the world’s most critical maritime arteries: the Panama Canal and the Suez Canal. Trump announced that he has tasked his secretary of state, Marco Rubio, to pursue this objective “immediately,” intensifying tensions with Panama and Egypt, the two nations that control these strategic waterways.
“American ships, both military and commercial, should be allowed to travel, free of charge, through the Panama and Suez canals!” Trump posted on his social media platform. He argued that both routes “would not exist” without U.S. involvement in their creation and security, suggesting that the U.S. deserves special privileges in exchange.
The demand marks a significant escalation of Trump’s months-long campaign to reassert American control or influence over the Panama Canal, a vital conduit for global trade since its opening in 1914. While the U.S. relinquished control of the canal to Panama in 1999 under the terms of the Torrijos-Carter Treaties, Trump has repeatedly questioned that handover, claiming it weakened U.S. strategic interests.
Panama’s response, though measured, was firm. Panamanian President Jose Raul Mulino, without naming Trump directly, reaffirmed the sovereignty and independence of the Panama Canal Authority (ACP), the autonomous body that regulates canal operations and fees. “There is no agreement to the contrary,” Mulino said, emphasising that tolls and regulations are determined internally, without foreign interference.
Adding to the friction, U.S. Defence Secretary Pete Hegseth, during a visit to Panama City earlier this month, proposed that American warships be granted “first and free” passage through the canal. Hegseth even floated the idea of U.S. troops returning to Panama to “secure” the waterway — a suggestion that was swiftly rejected by Panamanian officials, who cited their nation’s sovereignty and the canal’s peaceful operation as a global asset.
Currently, both the United States and China are among the top users of the Panama Canal, making its neutrality essential to maintaining international trade flows. Trump’s demands risk unsettling that balance, raising concerns among global shipping interests and in diplomatic circles.
Meanwhile, Trump’s call for free transit through Egypt’s Suez Canal signals an expansion of his aggressive stance on international waterways. The Suez Canal, which links the Mediterranean Sea to the Red Sea, is another critical chokepoint in global commerce, handling about 10% of maritime trade before recent disruptions.
Since late 2023, attacks by Yemen’s Houthi rebels on shipping in the Red Sea and Gulf of Aden — launched in response to the Israel-Gaza war — have severely impacted Suez Canal traffic. Ships have increasingly diverted around Africa’s Cape of Good Hope, significantly raising shipping times and costs. In early 2024, Egypt announced that Suez Canal revenues had plummeted by 60%, representing a $7 billion loss.
The U.S. military has responded with increasing force under Trump’s leadership. Since January 2024, U.S. forces have launched sustained strikes against Houthi positions in Yemen, aiming to neutralise the threat to commercial shipping. In recent weeks, those operations have intensified, with near-daily air and drone attacks. Trump has pledged that U.S. military action will continue “until the Houthis are no longer a threat to shipping.”
While Egypt has traditionally maintained cordial relations with the United States, Trump’s latest demand could test that relationship. Cairo relies heavily on revenue from the Suez Canal, and waiving tolls for American ships would represent a major financial blow to an already struggling economy.
Analysts warn that Trump’s confrontational approach could backfire, driving affected countries closer to rival powers like China or Russia, who could offer diplomatic and economic support. They also point out that both the Panama and Suez canals are governed by international treaties and laws designed to guarantee neutrality and non-discriminatory access.
“This is a clear test of the postwar maritime order,” said Julia Hernandez, a senior fellow at the International Maritime Institute. “Demanding free passage for one nation’s ships undermines the principle of equal access for all and threatens to politicise what have traditionally been neutral, open waterways.”
Critics also note the potential domestic implications. If Panama and Egypt reject Trump’s demands — a likely outcome given their strong incentives to maintain control over their strategic assets — the situation could lead to heightened military tensions or trade disruptions, impacting global supply chains at a delicate time.
Despite the diplomatic blowback, Trump’s move appears to reinforce his image as a strongman willing to prioritize American interests aggressively. It plays into his broader message of restoring U.S. global dominance, a theme he has hammered on the campaign trail.
For now, the world watches as Secretary of State Marco Rubio embarks on what could be a challenging diplomatic mission. With Panama, Egypt, and other global players wary of U.S. overreach, securing Trump’s demand for free ship transit — if it happens at all — is likely to be anything but easy.
