Trump’s Public Fight With Panama ‘Negotiation’ For New Deal: Analysis
President-elect Donald Trump is staying true to his style when discussing the Panama Canal — making his case for a "better deal" publicly.
This perspective comes from Van Hipp, chairman of American Defense International, Inc., and a former deputy assistant secretary of the U.S. Army, in a column published on FoxNews.com.
Trump sparked international attention this week by declaring that the United States should reclaim control of the Panama Canal unless Panamanian authorities address what he described as the “rip-off” of the United States.
He asserted that the U.S. was responsible for building and financing the canal, claiming President Jimmy Carter had “foolishly gave it away.”
Panama's President José Raúl Mulino countered by stating that the canal belongs to Panama. In response, Trump clarified, “It was given to Panama and to the people of Panama, but it has provisions. You got to treat us fairly, and they haven’t treated us fairly.”
The canal was sold to Panama for $1 under a treaty, though Trump pointed out that the agreement includes stipulations Panama is obligated to meet.
“Make no mistake, what Trump is doing is negotiating a new treaty for the Panama Canal and, therefore, a better deal for the American people,” Hipp wrote. He likened Trump’s approach to that of President Teddy Roosevelt, who navigated a complicated situation involving the French, Colombia, and the Panamanians to construct the canal.
The canal is vital for global trade and U.S. national security, with about 73% of ships passing through it either heading to or departing from U.S. ports, Hipp noted.
Its significance extends beyond trade. During World War II, the canal was essential for transporting supplies critical to the Allied effort, with U.S. forces stationed there to safeguard its operation.
“Of particular concern now is Communist China’s growing influence in Central and South America,” Hipp wrote. He highlighted that in 2017, under former Panamanian President Juan Carlos Varela, Panama shifted diplomatic ties from Taiwan to Communist China.
In response, the Trump administration acted swiftly. After Secretary of State Mike Pompeo’s 2018 visit, Panama canceled five infrastructure deals with Chinese firms.
Craig Fuller, CEO of FreightWaves, has raised alarms about “China embedding surveillance technology within the Canal’s infrastructure,” potentially enabling Beijing to monitor U.S. military and commercial movements. Such espionage risks, he argued, heighten strategic vulnerabilities and could grant China insight into U.S. logistics and military operations.
This concern aligns with testimony from U.S. Southern Command leader Gen. Laura Richardson before the House Armed Services Committee. She warned that “China is exercising our playbook of being present economically and equipping the United States’ hemispheric neighbors militarily.”
Timing may work in Trump’s favor, as Panama's newly elected president, who assumed office earlier this year, reportedly shares more ideological common ground with Trump, potentially making negotiations smoother.
Reflecting on the history of the canal’s transfer under President Carter, Hipp acknowledged the complex “foreign policy landscape” Trump faces. Yet, he expressed confidence in Trump’s ability to succeed.
“From the growing threat of Communist China and the possibility of a nuclear-armed Iran to ongoing Middle Eastern turmoil and the Russian-Ukraine conflict, Trump is navigating continuous national security challenges on the global stage,” Hipp observed.
“It’s an international chess match, and so far, America’s incoming commander-in-chief is playing it like the legendary chess master Bobby Fischer,” he concluded.