Reagan’s Warning and Trump’s Stand: The Panama Canal Debate Reignited

“We built it. We paid for it. It’s ours.”

Ronald Reagan’s words captured the sentiment of many Americans in the 1970s when the Panama Canal’s fate was up for debate. His message was clear: the United States had a responsibility to retain control of this vital asset, both for the canal’s operation and for securing the Western Hemisphere. Despite his passionate argument, Congress narrowly sided with then-President Jimmy Carter, approving treaties that handed the canal over to Panama in 1977.

The decision sparked controversy, but Reagan’s stance resonated deeply, especially among Americans frustrated with repeated foreign-policy retreats. His 1980 presidential victory was a testament to that frustration.

Now, decades later, the debate over the canal’s importance is back — thanks to President Donald Trump.

Trump Puts America First

“The Panama Canal is considered a VITAL National Asset for the United States, due to its critical role to America’s Economy and National Security,” Trump declared on Truth Social in December. He emphasized the canal’s role in U.S. commerce and rapid naval deployment, underscoring its strategic significance.

Trump also pointed out that the 1977 treaty stipulated the canal be operated by Panama alone, not by foreign powers like China. He criticized the fees being charged, calling them “ridiculous” and vowed to stop this “complete ‘rip-off’ of our Country.”

Predictably, Democrats attacked Trump’s statements, while Panamanian President Jose Raul Mulino insisted that China wasn’t involved in the canal’s operation. Yet, Trump’s concerns about the canal’s security and neutrality hold water, especially in light of China’s growing global influence.

A Strategic Asset Under Threat

Theodore Roosevelt, the driving force behind the canal’s construction, recognized its immense value. In 1901, he called the canal “of such consequence to the American people” that its completion was paramount. The canal revolutionized trade and solidified America’s status as a global power.

But the U.S. relinquished control in the 1970s, partly to avoid being seen as a colonial power and to ensure Panama’s pride in managing this landmark. Conservatives like William F. Buckley even supported the handover under the condition that Panama would operate the canal neutrally and fairly.

However, significant changes have occurred since then. A Hong Kong-based company purchased the canal’s Atlantic and Pacific ports in 1996 — a deal that appeared to violate treaty terms but went unenforced. At the time, Hong Kong was still under British control, but in 1997, it reverted to Chinese rule.

As Paul du Quenoy wrote in the New York Post, Beijing now wields immense influence over Hong Kong companies. In 2021, Panama renewed its deal with the Hong Kong company, effectively placing control of this critical asset under Chinese influence. China has also poured massive investments into Panama, further deepening its foothold.

Reagan’s Vision Revisited

Reagan’s warnings about relinquishing control of the canal have proven prophetic in an era where China’s military and economic expansion challenge global stability. Trump’s focus on the canal isn’t just a nostalgic nod to past debates — it’s a strategic move to counter Beijing’s influence in the Western Hemisphere.

By raising the issue alongside bold proposals like acquiring Greenland, Trump signals a broader pivot in U.S. foreign policy. This revival of a neo-Monroe Doctrine prioritizes securing America’s backyard against foreign adversaries.

The stakes couldn’t be higher. Traffic disruptions in the canal have already shown their ability to cripple supply chains. In a war scenario, U.S. naval movements could face severe challenges if the canal fell under hostile control.

America’s Interests Come First

Critics may scoff, and foreign leaders may fume, but Trump’s approach to the Panama Canal underscores a commitment to putting American interests above globalist platitudes. By reigniting the debate, Trump signals that America is done playing defense and is ready to reassert control over strategic assets.

The message is clear: safeguarding the Panama Canal isn’t just about history — it’s about securing America’s future.

Do you agree with Donald Trump’s views on the Panama Canal? Let us know in the comments!