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US President Donald Trump is seeking free passage for US ships through the Panama and Suez Canals
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He reasoned that both strategic waterways would not exist without the US
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The move would significantly cut costs for American companies whose ships ply both canals
US President Donald Trump is seeking free passage for US ships through the Panama and Suez canals.
In a recent post on Truth Social, Trump said “American Ships, both Military and Commercial, should be allowed to travel, free of charge, through the Panama and Suez Canals! Those Canals would not exist without the United States of America. I’ve asked Secretary of State Marco Rubio to immediately take care of, and memorialize, this situation.”
The move would significantly cut costs for American companies whose ships ply both canals.
The two canals are considered vital for US interests.
The Suez Canal, which connect the Mediterranean Sea and the Red Sea, has seen the US military conduct precision strikes to guarantee safe passage for commercial ships in response to the Red Sea crisis. The military strategy is aimed at counteracting Iranian influence in the region, as well as safeguarding American interests.
The Suez Canal imposes high transit fees, grossing revenues of $9.4 billion in 2023, mostly from US and European shipping.
The Panama Canal, meanwhile, allows ships to move more quickly between the Atlantic and Pacific oceans. It is an important route for US commerce, with some 40% of US container traffic using the canal yearly. The waterway was constructed and controlled by the US, but was ceded to Panama following its independence.
Of the 14,000 annual transits through the Panama Canal, US vessels account for 70% of the traffic.
In 2023, the canal generated some $3.3 billion in toll revenues.
US shipping giants such as Maersk’s US branch as well as MSC are among its most frequent users.
Ships that pass through it pay anywhere from $200,000 to $450,000 per transit, depending on their size and cargo. For liquified natural gas carriers, the toll is more than $500,000.
The Trump administration has been trying to secure the Panama Canal against Chinese influence. Two companies operating ports in the canal with ties to China were recently sold to US interests.
Also, an enhanced US-Panama partnership was recently announced which would allow US warships and support vessels priority passage through the canal.
