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Trump's request for free passage of US ships through two major canals is rejected.

Trump's request for free passage of US ships through two major canals is rejected.

TraderKnowsTraderKnows
2025-04-27
Summary:Trump requested free passage for American ships through the Panama Canal and the Suez Canal, which was countered by Panama and Egypt.

2025.4.27  美舰

On April 26th local time, former U.S. President Trump stated on his social platform Truth Social that American warships and commercial vessels should be allowed free passage through the Panama Canal and Suez Canal. He emphasized, "These canals would not exist without the United States." However, Trump did not provide any specific evidence for this claim.

He also mentioned that he had asked U.S. Secretary of State Rubio to "immediately handle and document this situation," aiming to push for U.S. rights on these two globally significant waterways. In fact, this is not the first time Trump has spoken on the Panama Canal issue. In recent months, he has repeatedly mentioned the desire to regain control over the Panama Canal, even threatening the potential use of military means.

In response to Trump's remarks, Panama quickly issued a statement. Panamanian President José Molino stressed that the sovereignty of the Panama Canal is "unshakable" and pointed out that Panama has had full control of the canal since 1999. Molino also clarified earlier statements this month regarding U.S. Secretary of Defense Pete Hegseth's visit. Hegseth had claimed that U.S. warships could pass through the Panama Canal for free and with priority, but Molino rebutted that such claims lack factual basis, and no formal agreement has been reached, noting that Hegseth's statement only reflects a personal opinion.

The Panama Canal is a critical route connecting the Atlantic and Pacific Oceans and is vital for U.S. shipping. About 40% of U.S. container shipping passes through the Panama Canal, particularly trade flow originating or heading to ports in the Gulf of Mexico and the East Coast, which is heavily reliant on it. Historically, the U.S. indeed led the construction and long-term control of the canal and its surrounding areas until the 1977 Torrijos-Carter Treaties laid the groundwork for its eventual transfer to Panama, culminating in a formal handover in 1999.

Meanwhile, Trump also targeted Egypt, demanding that U.S. warships and commercial vessels should have the right to pass through the Suez Canal for free. Since its opening in 1869, the Suez Canal has played an essential strategic role as a key trade route between Asia and Europe, handling approximately 12%-15% of global trade flow.

However, it should be noted that the United States has never directly participated in the construction of the Suez Canal, nor has it ever owned this canal. Recently, attacks by Yemen's Houthi forces in the Red Sea and surrounding waters have led to a significant decrease in shipping volume through the Suez Canal, further heightening the geopolitical sensitivity of this route.

Overall, both the Panama Canal and the Suez Canal are controlled by sovereign nations, and the U.S. holds much less influence over them than Trump claims. Currently, both Panama and Egypt have clearly stated that they do not accept unilateral demands or "priority passage" arrangements without negotiation.

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Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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