The Panama Canal, a symbol of engineering ingenuity and geopolitical significance, is once again making headlines as President-elect Donald Trump calls for the United States to reclaim control of the vital waterway. Trump’s statements, citing “exorbitant fees” and alleged Chinese influence, have sparked international debate and strong resistance from Panama.

The canal’s history is deeply intertwined with U.S. influence. Completed in 1914, the Panama Canal was a groundbreaking project that connected the Atlantic and Pacific Oceans, revolutionizing global trade. It came at a high human cost, with an estimated 5,600 workers dying during construction. The canal’s strategic importance was underscored during World War II, when it facilitated the movement of Allied forces. For decades, the U.S. controlled a 10-mile-wide strip of land around the canal, sparking resentment in Panama over sovereignty and economic disparities.

Tensions culminated in the 1964 anti-American riots, leading to diplomatic negotiations that resulted in the 1977 Panama Canal treaties. Signed during President Jimmy Carter’s administration, the agreements transferred control of the canal to Panama by 1999 and established its neutrality. Despite criticism at the time, the treaties marked a turning point in U.S.-Panama relations, emphasizing sovereignty and cooperation.

Today, the canal faces modern challenges, including increased shipping demands and climate-related droughts that have reduced water levels. To address these issues, Panama has imposed higher transit fees and implemented restrictions on canal usage. Trump has criticized these fees as “ridiculous” and accused Panama of exploiting the U.S., a claim dismissed by Panamanian officials. Ricaurte Vásquez Morales, the administrator of the Panama Canal Authority, insists the fees are impartial and adhere to international law.

Trump’s concerns over Chinese influence add another layer to the controversy. Since Panama’s recognition of Beijing over Taiwan in 2017, China has expanded its presence in the region. While Panamanian President José Raúl Mulino denies any external control over the canal, Trump’s rhetoric has reignited fears of U.S. intervention. His threats to retake the canal echo historical tensions, raising questions about sovereignty, diplomacy, and the role of global powers in managing strategic resources.

The Panama Canal’s story is one of ambition, conflict, and compromise. As it navigates modern challenges, the canal remains a focal point of international trade—and a potential flashpoint for geopolitical disputes.