Former U.S. President Donald Trump has called for immediate action to allow American military and commercial ships to pass through the Panama and Suez Canals without paying tolls. Trump has directed Secretary of State Marco Rubio to address the issue urgently. The demand reflects Trump’s longstanding focus on maintaining U.S. influence over key international waterways. In an online statement, Trump argued that these vital routes would not exist without past U.S. involvement and should therefore be open to American vessels free of charge.
Panama and Egypt Push Back Against Trump’s Demands
Panama’s President Jose Raul Mulino quickly responded, stating that the Panama Canal Authority, an independent organization, manages all toll decisions. He emphasized that no special exemptions exist for any country, including the United States.
“The Panama Canal operates under international agreements and national law. Fees apply equally to all users,” Mulino said during a press briefing.
U.S. Defense Secretary Pete Hegseth had earlier suggested granting U.S. warships free and prioritized access to the Panama Canal. He also proposed re-establishing a U.S. military presence in Panama, an idea the Panamanian government firmly rejected.
Meanwhile, Egypt is facing its own challenges with the Suez Canal. Following attacks by Yemen’s Houthi rebels in the Red Sea, the Suez Canal has seen a 60% drop in revenue, leading to a financial loss estimated at $7 billion. Many shipping companies now choose alternative routes to avoid the risk of attack.
Increased U.S. Military Action in the Red Sea
Since January 2024, American forces have carried out frequent strikes against Houthi rebel positions. The military operations aim to ensure the safety of international shipping through the Red Sea and nearby areas. Under Trump’s leadership, the intensity of these strikes has increased, with air raids now occurring almost daily.
Trump recently stated, “We will continue military operations until the Houthis are no longer a threat to international trade routes.”
Pentagon officials have reported that these missions have targeted weapons storage sites, missile launchers, and communication hubs used by the Houthis. According to U.S. Central Command, the efforts have helped reduce the number of direct attacks on commercial vessels in the region.
Strategic Importance of Global Waterways
The Panama Canal and the Suez Canal are two of the most critical trade routes in the world. The Panama Canal links the Atlantic and Pacific Oceans, while the Suez Canal connects the Mediterranean Sea to the Red Sea and the Indian Ocean.
According to the Panama Canal Authority, about 13,000 to 14,000 ships cross the canal each year, carrying nearly 5% of global trade. The Suez Canal sees even more traffic, with about 12% of worldwide goods transported through its waters annually, according to the Suez Canal Authority.
Any disruption to these routes can cause major delays in global supply chains, affecting the cost and availability of goods worldwide.
While Trump’s demands have attracted attention, experts note that changes to toll policies would require complex negotiations and likely face significant resistance. Both Panama and Egypt rely heavily on canal revenues to support their economies and national infrastructure projects.
Dr. Laura Sanchez, a political analyst at the Global Trade Institute, said, “Expecting these nations to give up such an important income source, especially during economic challenges, is unrealistic.”
At this stage, neither Panama nor Egypt has indicated willingness to reconsider their toll policies.