President Donald Trump has proposed that American ships, both military and commercial, should be granted free passage through the Panama and Suez Canals, a move that could significantly reduce costs for U.S. companies. Trump emphasized the importance of these strategic waterways on Fox News, stating that these canals would not exist without the United States.
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The Panama Canal, a crucial artery for global trade, manages approximately 14,000 transits annually, with U.S. vessels accounting for about 70% of the traffic. In fiscal year 2023, the canal generated around $3.3 billion in toll revenues, according to data from the U.S. Department of Transportation. American shipping giants, including Maersk’s U.S. branch and MSC, are among the canal’s most frequent users.
Shipping costs across the Panama Canal range from $200,000 to $450,000 per transit for commercial vessels, depending on their size and cargo. For specific types like liquefied natural gas carriers, tolls can exceed $500,000. Meanwhile, the Suez Canal also imposes high transit fees, with the Suez Canal Authority reporting record revenues of $9.4 billion in 2023, driven largely by U.S. and European shipping.
In response to threats in the Red Sea, Trump’s administration has conducted precision strikes to ensure safe passage for commercial shipping bound for the Suez Canal. This military strategy aims to counteract Iranian influence in the region and safeguard U.S. interests.
In Central America, the Trump administration is working to secure the Panama Canal against Chinese influence. Defense Secretary Pete Hegseth announced an enhanced U.S.-Panama partnership, allowing U.S. warships and support vessels priority passage through the canal. Hegseth stressed the importance of keeping the canal secured by Panama and the U.S., rather than China.
The Panama Canal remains a vital route for American commerce, with about 40% of U.S. container traffic utilizing the canal each year. Historically, the canal was constructed and controlled by the U.S. following Panama’s independence, under the Hay-Bunau-Varilla Treaty.
