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Trump Vows to “Take Back” Panama Canal, Raise Tariffs on Trade
Trump promises to take back the Panama Canal and increase tariffs on trade if elected, sparking debates on U.S. power and global trade.
Donald Trump promised to reclaim control of the Panama Canal if he won back the White House in 2024. Speaking on January 20, 2025, Trump called the 1999 transfer of the canal to Panama a “mistake” and said he would work to restore it to U.S. hands.
The Panama Canal, a critical waterway for global trade, was handed over to Panama nearly 25 years ago. Trump’s statement has sparked fresh debate over the U.S.'s role in the region and the growing influence of foreign powers, especially China, in Panama.
Raising Tariffs to Boost U.S. Industry
In addition to taking control of the canal, Trump also vowed to increase tariffs on goods passing through it. His goal? To protect U.S. jobs and manufacturing by raising the costs of foreign imports. Trump’s supporters argue that this move would help reduce the impact of cheap foreign goods on American industries.
However, critics warn that such tariff hikes could disrupt trade and raise prices for consumers, possibly leading to retaliation from other countries.
Panama and China Respond
Both Panama and China quickly responded to Trump’s remarks. Panama’s President, Laurentino Cortizo, defended the country's sovereignty over the canal, stressing its importance to the nation’s economy. Meanwhile, China, which has been investing in Panama's infrastructure, emphasized the importance of maintaining strong relations with the country.
What’s Next?
Trump’s comments are already making waves as the 2024 election season heats up. His proposals could become a major topic of discussion, with potential consequences for global trade and U.S. foreign policy. As the world watches closely, the future of the Panama Canal, and Trump’s plan to take control of it, remains uncertain.