President Donald Trump has called for American military and commercial ships to move through the Panama and Suez canals without paying tolls, claiming that these crucial waterways would not exist without the United States.
Posting on Truth Social on Saturday (April 26, 2025), Trump stated, “American Ships, both Military and Commercial, should be allowed to travel, free of charge, through the Panama and Suez Canals!” He added that he had directed Secretary of State Marco Rubio to “immediately take care of, and memorialize, this situation.”
This move aims to save American companies hundreds of millions of dollars each year. The Panama Canal alone is used heavily by U.S. shipping, handling about 14,000 ship transits annually, according to the Panama Canal Authority (ACP).
In 2023, the canal generated about $3.3 billion in toll revenues, with U.S. vessels accounting for nearly 70% of the total traffic, based on U.S. Department of Transportation data.
Crossing the Panama Canal can cost a commercial ship anywhere between $200,000 and $450,000, depending on the vessel’s size and cargo.
For specialised ships like liquefied natural gas (LNG) carriers, the fee can go beyond $500,000 for a single transit, according to the ACP’s pricing.
The Suez Canal, managed by Egypt, charges similar fees and has been a vital trade link between Europe and Asia.
In 2023, the Suez Canal Authority reported record revenues of $9.4 billion, driven heavily by U.S. and European shipping after Houthi attacks disrupted safe passage in the Red Sea.
However, due to the ongoing attacks, Egypt reported that revenues dropped by 60%, causing a financial loss of about $7 billion.
Trump had previously approved a long-term U.S. military campaign to target Houthi missile sites, drone launchers, and radar systems in northern Yemen.
The Pentagon reported that U.S. air and naval forces have conducted dozens of precision strikes to restore freedom of navigation for commercial shipping toward the Suez Canal.
He has vowed that military actions will continue until Houthi forces no longer pose a threat to ships.
Earlier in April 2025, U.S. Defense Secretary Pete Hegseth visited Panama City and announced an expanded security partnership with Panama.
Hegseth confirmed that a memorandum of understanding was signed, allowing U.S. warships and support vessels to move “first and free” through the canal.
He stated that the Panama Canal is “key terrain” that must be secured with Panama and the United States, rather than falling under Chinese influence.
However, Panama responded cautiously to Trump’s call. Panamanian President Jose Raul Mulino, without directly naming Trump, stated that toll fees for the Panama Canal are governed by the Panama Canal Authority, an independent organisation.
He also clarified through a post on X (formerly Twitter) that “there is no agreement to the contrary.”
The Panama Canal has historically been closely tied to the United States. After backing Panama’s independence in 1903, the U.S. led the massive construction project to build the canal, which opened in 1914 under the Hay-Bunau-Varilla Treaty.
It remained under American control until 1999 when it was handed over to Panama following the Torrijos-Carter Treaties.
Despite this, the canal continues to be crucial for U.S. trade, helping ships avoid nearly 8,000 miles of travel between the East Coast and Asia.
About 40% of U.S. container traffic depends on the canal, according to the U.S. Maritime Administration.
Gaining free passage would bring major savings for American energy, agricultural, and manufacturing companies that rely on exports and imports via maritime routes.
References: thehindu, foxbusiness
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