United States President Donald Trump said U.S. military and commercial ships should be allowed to travel free of charge through the Panama and Suez canals, two strategic routes for global trade and military operations.
Posting on Truth Social Saturday, Trump declared, “American Ships, both Military and Commercial, should be allowed to travel, free of charge, through the Panama and Suez Canals! Those Canals would not exist without the United States of America.””I’ve asked Secretary of State Marco Rubio to immediately take care of, and memorialize, this situation!”
40 percent of US container traffic passes
The Panama Canal passes through the narrowest part of the strait between North and South America, allowing ships to travel more quickly between the Atlantic and Pacific Oceans.About 40 percent of US container traffic passes through the canal annually.
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In fiscal year 2023
In fiscal year 2023, it generated approximately $3.3 billion in toll revenues, with U.S. vessels making up about 70% of total canal traffic, according to U.S. Department of Transportation data.American shippers — including companies like Maersk (U.S. branch), MSC, and major energy exporters — are some of the canal’s biggest customers.
On average, it costs a commercial vessel anywhere from $200,000 to $450,000 to cross the Panama Canal, depending on ship size and cargo, based on canal authority pricing schedules. In some cases — like liquefied natural gas carriers — tolls can reach over $500,000 per transit.
American commercial shipping interests have long depended on the Panama Canal, which cuts nearly 8,000 miles off the shipping route between the U.S. East Coast and Asia. About 40% of all U.S. container traffic uses the canal each year, according to the U.S. Maritime Administration.
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Historically, the U.S. built and controlled the Panama Canal after a monumental construction effort led by President Theodore Roosevelt in the early 20th century. Following Panama’s independence, and backed by U.S. military support in 1903, the U.S. secured the rights to construct and operate the canal under the Hay-Bunau-Varilla Treaty.
The United States completed the construction of the canal in the early 20th century, but transferred control of the strategically important waterway to Panama in 1999. Trump has repeatedly emphasized his desire to “take back” the canal. Before taking office in January, he told reporters that he would not rule out using economic or military force to regain control of the canal.
The canal opened in 1914, becoming a major symbol of American economic and technological strength. U.S. control ended in 1999 under the Torrijos-Carter Treaties, but the waterway remains essential to American trade flows.
In Central America, Trump’s push for free passage comes as his administration moves to shore up security around the Panama Canal against Chinese influence.
The Suez Canal
The Suez Canal, (a key waterway linking Europe and Asia ) meanwhile, charges similarly steep rates. Egypt’s Suez Canal Authority SCA reported $9.4 billion in revenues in 2023, an all-time high, heavily fueled by U.S. and European shipping amid Red Sea disruptions.In early 2025, following a wave of Houthi drone and missile attacks on Red Sea shipping lanes, Trump authorized a sustained firebombing campaign targeting Houthi missile sites, radar installations, and drone launch platforms across northern Yemen.Egypt said last year its canal revenues had plunged 60%, a loss of $7 billion.
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The US military has been attacking Houthi positions since January 2024, but those assaults have intensified under Trump, with almost daily strikes in the past month. Trump has vowed that military action would continue until the Houthis are no longer a threat to shipping.
It remains to be seen whether Secretary of State Marco Rubio will pursue Trump’s directive through diplomacy, economic pressure, or future agreements with Panama and Egypt.
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