Trump Threatens to Seize Panama Canal — 'For National Security Purposes,' Does Not Rule Out Military Force

President-elect Donald Trump threatens to demand the return of the Panama Canal to US control, citing excessive tolls charged to American ships and Chinese influence over canal operations. At a press conference on January 7, 2025, Trump refuses to rule out using military force to retake the canal, saying 'We need it for our national security.' Panamanian President José Raúl Mulino responds that the canal 'is and will remain' Panamanian. The canal was transferred to Panama in 1999 under the Torrijos-Carter Treaties signed by President Jimmy Carter in 1977. Trump's threats mark a dramatic escalation from his first-term rhetoric, representing the first time a modern US president has openly threatened military action to seize territory from a sovereign ally. The Panama Canal carries approximately 5% of global maritime trade, and Trump's threats alarm international shipping concerns.