Trump Is Threatening to Retake the Panama Canal, but Why Does He Want It?

Former and future president Donald Trump has a certain territorial streak. During his first term, he famously tried to purchase Greenland, a country that is "not for sale." In addition to revisiting that idea, it seems like Trump might also be interested in the Panama Canal, which is man-made and ensures that ships do not have to travel around South America to get from the Atlantic to the Pacific Ocean.

Following the news that Trump wants the U.S. to control the canal, many wondered why he was interested in taking it to begin with. Here's what we know.

During a speech in Phoenix on Dec. 22, Trump said that he wanted to retake the canal from the country of Panama because the U.S. was being overcharged for using it. He also seemed to suggest that China's influence over the crucial waterway was growing.

“The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S.,” he said.

Trump seemed to suggest that Panama may be in violation of the agreement that allows them to control the canal, a claim for which there is basically no evidence.

If they violate the agreement, "then we will demand that the Panama Canal be returned to the United States. So, to the officials of Panama, please be guided accordingly," Trump said. It's unclear what Trump would actually do to make this claim a reality since Panama is a friendly ally to the U.S.

In addition to the overcharging that Trump claims is happening, it seems likely that his desire to retake the canal is part of a broader effort to make the U.S. seem strong. Trump sees the world in terms of conquered and conqueror, and he wants to make sure that the U.S. is in that first category. One obvious way to make that happen is through territorial expansion.

Some have also speculated that it might be related to Panama forcing Trump to pay taxes in the country.

Trump's desire to retake the canal stems in part from the fact that it was the U.S. that built it. The canal was opened in 1914 and was controlled by the U.S. until a 1977 agreement facilitated the transfer of control back to the Panamanians. The U.S. and Panama operated the canal jointly until 1999 when control was handed to Panama in full.

“As President, I want to express precisely that every square meter of the Panama Canal and its adjacent area belong to Panama, and will continue to be,” Panama's president made clear José Raúl Mulino said in a statement. “The sovereignty and independence of our country are not negotiable."

Given that the Panama Canal is on Panamanian soil, it makes sense that Panama retains control of the crucial shipping lane. What's more, it seems unlikely that Trump would be able to wrest control back from the country without the use of force, a move that would certainly be divisive at home.