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Analyzing Trump’s Remarks on the Suez and Panama Canals
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By: Laila Ahmed
(Research Assistant at the International Affairs Unit)
“American ships, both military and commercial, should be allowed to travel, free of charge, through the Panama and Suez canals!” Trump posted on Saturday on social media. A post that sparked outrage, condemnation, and even mockery across the globe.
His demands although could be labeled “dangerous” or “insane” or even “colonial” as they obviously contradict the international law and the Constantinople Convention, they sound predictable or normal I could say from a man like Trump. Bear in mind that his unorthodox unpredictable foreign policy is facing a more volatile geopolitical landscape with many autonomous actors in the new multipolar world thus he is pursuing every opportunity in the most chaotic way.
On 26 April, President Donald Trump has demanded free transit for American commercial and military ships through the Panama and Suez canals, two strategic routes for international trade and military operations asking his his secretary of state Marco Rubio to immediately take care of the situation. He then added that “Those Canals would not exist without the United States of America”. Trump has for months been calling for the United States to take control of the Panama canal,but his social media post also brought attention to the crucial Suez Canal.[1]
Strategic importance of Panama and Suez Canals
While The Panama Canal connects the Caribbean Sea with the Pacific Ocean, The Suez Canal connects the Mediterranean Sea with the Red Sea. Both are crucial for international trade because they reduce shipping costs and time, while also giving militaries a quick way to move between oceans, strengthening geopolitical influence.[2]
“China is operating the Panama Canal and we didn’t give it to China, we gave it to Panama, and we’re taking it back.” A strong message sent by Trump back in February. As revealed earlier, Trump has frequently criticized Panama’s management of the canal showing some intentions to retake the waterway from Panama even if it takes using the military to do so based on the fact that the United States built the canal in the early 1900s and returned it to Panama in 1977.
Additionally, The Panama Canal, which connects the Atlantic and Pacific Oceans by crossing the narrowest part of the Central American isthmus, is a critical global trade route, handling about 40% of U.S. container traffic annually. [3]
Meanwhile, Egypt’s Suez Canal, a key waterway linking Europe and Asia, accounted for about 10% of global maritime trade before attacks by Yemen’s Houthi rebels on shipping routes in the Red Sea and Gulf of Aden. Ships have been compelled to make the expensive and time-consuming diversion around Africa’s southern edge as a result. In 2024, Egypt reported a 60% decline in canal revenues, resulting in a $7billion loss. Therefore, The US military has been attacking Houthi positions since January 2024. Trump has said military action will continue until the Houthis are no longer a threat to shipping.[4]
US President Donald Trump’s controversial statement asking for a free passage through the Suez Canal has caused controversy in Egypt as the canal holds immense national and historical significance. The Suez Canal was built by the French-led Suez Canal Company in the 19th century. Great Britain sought the control of the Canal in an alliance with the French and Israelis before President Gamal Abdel Nasser nationalized the waterway in 1956. Although there have been no official responses in Cairo, Trump’s calls for the expulsion of Palestinians from Gaza and his declaration that US ships would not be charged for accessing the Suez Canal are further straining US-Egyptian ties.[5]
Motives behind Trump’s statement
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Economic considerations
The Panama Canal is among the most significant waterways for global trade, servicing 5 percent of the total volume of maritime trade globally thus, critical for efficient trade. Forty percent of US container traffic passes through the canal annually, carrying about $270 billion in cargo. The Panama Canal is, the fastest route for trade between the US East Coast and Asia, for example from New York to Shanghai. On the other hand, The Suez Canal, which moves 12 percent of all world trade, links the Red Sea to the Mediterranean, playing a critical role in global trade by offering a direct route for shipping between Europe and Asia. [6]
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Concerns about Chinese influence
China is operating the Panama Canal and we didn’t give it to China, we gave it to Panama, and we’re taking it back. Trump has frequently criticized Panama’s management of the canal for charging “outrageous prices and rates of passage” and showed his doubts about the increased influence of China in the management of the Panama Canal.[7] At the same time, Mr Trump’s rhetoric has only raised tension with Egypt, whose armed forces are currently conducting a joint military exercise with China, expected to last until early May.[8]
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An attempt to extend American military influence by controlling vital maritime passages
Trump’s demand could be a part of his “political and commercial bullying” of a number of countries around the world in order to extract the greatest possible concessions that satisfy his transactional propensities. Under Trump, US administration is seeking to seize and dominate the key chokepoints of global trade in order to prepare for conflict with China. This includes not only the domination of the Red Sea but also Trump’s plan to seize the Panama Canal and annex Canada and Greenland to control a future Northwest passage through the Arctic.
Reactions from Egypt and Panama
Panama’s President José Raúl Mulino on X, without naming Trump” stated that the Panama Canal Authority (ACP), an independent governmental agency, controls the “transits and costs of all vessels through their Canal”. According to Mulino, “there is no agreement to the contrary”.[9]
Reactions varied in the streets with various public figures emphasized on the fact that the Suez Canal “is a national symbol that is not up for negotiation, people died during the canal’s construction, which was financed entirely by Egyptians. International law experts argued that Trump’s remarks represent a blatant violation of international law and an assault on Egyptian sovereignty as Egypt’s sovereignty over the canal is protected by international law and the Constantinople Convention, which prohibits any external party from compromising the canal’s neutrality.[10]
Implications of Trump’s Statement
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Tension in American relations with Egypt and Panama
The statement is considered a direct interference in the national sovereignty of both Egypt and Panama which may push the two countries to reassess their diplomatic relations with the United States. Also, he is further strains Egypt ties by this statement especially in light of other ongoing crises such as the Gaza issue.[11]
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Violation of International law
His demand clearly deviates from the provisions of the Constantinople Convention of 1888, which regulates navigation in the Suez Canal, particularly Articles 1 and 12 of the convention. The fundamental principle underlying the legal regime of the Suez Canal is ensuring freedom of passage for all ships in the canal without discrimination, while acknowledging Egypt’s right to defend itself and use the necessary measures to compel countries to implement the provisions of the Constantinople Convention.[12]
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Threat to global trade stability
The Suez Canal and Panama Canal significantly are vital passages for 10% to 15% of global trade thus, Any threat or disruption could lead to an increase in shipping costs, and consequently, a rise in global commodity prices with also a potential disruptions in supply chains.[13]
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The international standing of the United States
Obviously, Trump’s statement portrays the United States as a power that does not respect international laws as the matter is clear and leaves no room for misunderstanding, it clearly contradicts international law and the Constantinople Convention. Consequently, it may prompt other countries like China and Russia to exploit the situation to expand their influence by presenting themselves as defenders of international law.[14]
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Increasing the Chaos in the White House