Trump Says US Won’t Allow China to Take Control of Panama Canal

July 2, 2026

Washington: US President Donald Trump has reiterated his criticism of the transfer of the Panama Canal to Panama, claiming China is attempting to expand its influence over the strategic waterway. Speaking at the dedication of the Theodore Roosevelt Presidential Library in North Dakota, Trump said the United States would not allow China to take control of the canal.

Claims Canal Transfer Was a Mistake

While highlighting former President Theodore Roosevelt’s role in building the Panama Canal, Trump described the project as one of America’s greatest engineering achievements. He argued that handing over control of the canal to Panama was a historic mistake and claimed transit charges increased significantly after the transfer.

No New Policy Announced

Despite his strong remarks, Trump did not announce any new policy measures or actions regarding the Panama Canal. His comments were made in the context of discussing Theodore Roosevelt’s legacy and the canal’s historical significance.

Why the Panama Canal Matters

The 82-kilometre Panama Canal connects the Atlantic and Pacific oceans and handles nearly 5% of global maritime trade. Managed by the Panama Canal Authority since the US completed the transfer in 1999, the waterway remains one of the world’s most important shipping routes. Any disruption or geopolitical tensions surrounding the canal could have implications for global trade, shipping costs and international supply chains, including those involving India.