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Why Does Trump Want to Take Back Control of the Panama Canal?

February 26, 2025

Why Does Trump Want to Take Back Control of the Panama Canal?

Ask students: Why was the Panama Canal built? How did the United States' early control of the Panama Canal present issues for Panamanians?

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Summary

Since returning to office, President Donald Trump has made repeated claims that China operates the Panama Canal and threatened to take it back from the Panama Canal Authority, which has controlled it since 1999. Economics correspondent Paul Solman examines the canal’s history and the facts surrounding its operation.

View the transcript of the story.

Key terms

Panama Canal — the lock-type canal that connects the Atlantic and Pacific oceans through the narrow Isthmus of Panama.

News alternative: Check out recent segments from the NewsHour, and choose the story you’re most interested in watching. You can make a Google doc copy of discussion questions that work for any of the stories here.

Remote video URL

Warm-Up Questions

  1. Why was the Panama Canal built?
  2. How did the United States' early control of the Panama Canal present issues for Panamanians?
  3. Which U.S. president finally conceded control of the canal to Panama?
  4. What are some of the biggest U.S. exports that go through the canal?
  5. Why has there been a recent rise in tolls to use the Panama Canal?

Focus Questions

Some people, including Donald Trump, believe that China's presence in the Panama Canal is a cause for concern. Why might China and Panama's relationship be an issue for the United States? Explain your response.

Media literacy: The Panama Canal has a tumultuous past, including the high worker mortality, U.S. and Europe's racist treatment of workers to military involvement by the U.S. and more.

Do you think more of this history should be discussed in the story or is it better to focus on events taking place now? Explain.

Learn more about this history in The Conversation's article Four things you should know about the Panama Canal’s turbulent past and how the United States took possession of the canal zone after failed negotiations with Colombia in this PBS American Experience piece.

What Students Can Do

Learn more about the history of the Panama Canal by exploring the Panama Canal Authority's official website.

Donald Trump has threatened to take back control of the Panama Canal, claiming that the U.S. is being unfairly charged, and that China operates the canal. Take a look at the historic Neutrality Treaty signed by Panama and the U.S. in 1977, ensuring that the canal would be neutral and open to all ships. How do you think this agreement might change if the U.S. takes back control of the canal?

The website includes a Maritime Tariff List, which lists in detail the various tolls that ships from all around the world are required to pay to pass through the canal. Do you see anything on the list that suggests that United States ships are being charged more than other countries' vessels?

ship in the panama canal

Written by Gianfranco Beran, PBS News Hour Classroom's production assistant, and Classroom's director, Victoria Pasquantonio.

Republished with permission from PBS NewsHour Classroom.

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