Russia enters the fray: Trump’s Panama Canal claims threaten global trade neutrality

01/29/2025 / By Ramon Tomey

U.S. President Donald Trump renewed calls for Washington to regain control over the Panama Canal, citing concerns over alleged overcharging of American ships and Chinese influence.
The canal was built by American engineers and controlled by the U.S. until 1999, when it was transferred to Panama. Today, it remains under Panamanian control and handles about 40 percent of U.S. container ship traffic.
Panamanian President Jose Raul Mulino firmly rejected Trump’s claims, asserting Panama’s sovereignty over the canal and its intention to maintain its control and neutrality.
Russia, a key ally of China, emphasized the need to respect the canal’s permanent neutrality and accessibility to all ships, highlighting Moscow’s interest in maintaining the canal as a neutral trade route.
The dispute highlights the challenges of Trump’s assertive foreign policy, potentially affecting global trade and regional stability, and could test the U.S.’s ability to balance national interests with international diplomacy.

U.S. President Donald Trump’s renewed calls for Washington to reassert control over the Panama Canal have ignited a diplomatic firestorm, drawing sharp rebukes from Panama and raising concerns from Russia over the future of one of the world’s most critical trade routes.

In his inauguration speech on Jan. 20, Trump reiterated his belief that the U.S. should reclaim the canal. It was built by American engineers in the early 20th century and controlled by the U.S. government until 1999, when it was turned over to Panama City.

“American ships are being severely overcharged … and above all, China is operating the Panama Canal. We didn’t give it to China. We gave it to Panama, and we’re taking it back,” Trump declared. (Related: Trump vows to reclaim Panama Canal, saying it belongs to America.)

His remarks echoed previous statements in which he accused Chinese entities of exerting undue influence over the canal and criticized Panama for allegedly overcharging U.S. vessels. But Russia, a key player in global geopolitics and Beijing’s close ally, weighed in on the issue.

Alexander Shchetinin, head of the Latin American department at the Russian Ministry of Foreign Affairs, urged both Panama and the U.S. to respect the “current international legal regime” governing the canal.

“Russia has been a party to the protocol since 1988 and reaffirms its obligations to respect the permanent neutrality of the Panama Canal, advocating for keeping this international transit waterway safe and open,” Shchetinin said, according to a translation of comments reported by Russia’s state-run news agency TASS.

The diplomat emphasized that while the canal “legally belongs to Panama,” it must remain accessible to all ships, regardless of their flag. His remarks highlight Moscow’s interest in maintaining the canal as a neutral and open trade route, free from unilateral control by any single nation.

Panama’s defiant response to Trump: The canal is “non-negotiable”

Panamanian President Jose Raul Mulino swiftly rejected Trump’s claims, vowing to defend his country’s sovereignty over the canal.

“As president, I want to clearly state that every square meter of the Panama Canal and its adjoining zone is Panama’s and will remain so,” Mulino said in a December 2024 video statement. “The sovereignty and independence of our country is non-negotiable.”

Mulino’s defiance was echoed in a statement released shortly after Trump’s inauguration. “I must wholeheartedly reject the remarks President Donald Trump made in his inaugural speech regarding Panama and its canal,” Mulino said.

He emphasized that the canal’s administration “will remain under Panamanian control, with respect for its permanent neutrality,” and dismissed claims of foreign interference. “No nation in the world is interfering in the control of the canal,” he asserted.

The Panamanian leader also underscored the historical significance of the canal’s transfer to Panama in 1999, calling it the result of a “generational struggle.” He pledged to continue facilitating international trade through the vital waterway, which connects the Atlantic and Pacific oceans and handles approximately 40 percent of U.S. container ship traffic, according to the Center for Strategic and International Studies.

For now, the Panama Canal remains under Panamanian control, a status that Mulino has vowed to protect at all costs. “We will exercise the right to protect ourselves,” he said, signaling that Panama is prepared to resist any attempts by the U.S. to retake the canal by force.

The Panama Canal issue has become a focal point in Trump’s broader America First agenda, which has also included controversial proposals such as the potential annexation of Greenland and Canada. Trump’s suggestion that Denmark might agree to sell Greenland to the U.S. has drawn criticism from Danish officials, while his comments about Canada have been met with skepticism and concern.

As tensions simmer over the canal, the dispute underscores the challenges of Trump’s assertive foreign policy approach. While the U.S. has long viewed the canal as a strategic asset, Panama’s firm stance and Russia’s call for neutrality suggest that any attempt to reclaim control could face significant international resistance.

The Panama Canal issue could become a defining test of the second Trump administration’s ability to balance national interests with international diplomacy. With Russia watching closely and Panama standing firm, the stakes for global trade and regional stability could not be higher.

Watch former Sen. Rick Santorum (R-PA) explaining that Trump is focused on making Greenland and the Panama Canal safe and secure in this clip.

This video is from the NewsClips channel on Brighteon.com.