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President Donald Trump said on Saturday that American military and commercial vessels should be allowed to pass through the Panama and Suez canals without paying tolls, directing Secretary of State Marco Rubio to act on the matter “immediately”. “American ships, both military and commercial, should be allowed to travel, free of charge, through the Panama and Suez canals!” Trump posted on Truth Social. “I’ve asked Secretary of State Marco Rubio to immediately take care of, and memorialise, this situation.”
The Panama Canal, a critical trade route linking the Atlantic and Pacific Oceans, handles about 40% of U.S. container traffic annually, Reuters reported. Although the United States completed its construction in the early 20th century, control of the canal was transferred to Panama in 1999. Trump has repeatedly expressed a desire to “take back” the canal, suggesting even before taking office that he would not rule out using economic or military force to regain control.
Trump’s remarks also pointed toward the Suez Canal, another major shipping corridor connecting Europe and Asia. According to AFP, he asserted that both the Panama and Suez routes would “not exist” without U.S. involvement.
Meanwhile, Panamanian President Jose Raul Mulino, without directly addressing Trump’s comments, said on Saturday that tolls are governed by the Panama Canal Authority (ACP), an autonomous body. “There is no agreement to the contrary,” Mulino said, according to AFP.
Earlier this month, U.S. Defense Secretary Pete Hegseth, during a visit to Panama City, revealed that the U.S. was seeking an arrangement allowing its warships to pass through the Panama Canal “first and free.” Hegseth also reportedly floated the idea of stationing U.S. troops in Panama to “secure” the canal — a suggestion that Panama’s government has reportedly rejected.
Meanwhile, the Suez Canal — a vital waterway that once accounted for about 10% of global maritime trade — has been severely impacted by ongoing conflict in the Red Sea region. Yemen’s Iran-backed Houthi rebels began targetting ships following the outbreak of the Israel-Gaza war, prompting many vessels to divert around the southern tip of Africa, AFP reported, adding that as a result, Egypt reported in 2024 that its canal revenues had plummeted by 60%, amounting to a $7 billion loss.
The U.S. military has been conducting strikes against Houthi positions since January 2024. Under Trump’s administration, the frequency of these attacks has increased, with near-daily strikes reported over the past month. Trump has stated that the military campaign will continue until the Houthis no longer pose a threat to international shipping.
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