The Panama Canal, a marvel of engineering that connects the Atlantic and Pacific Oceans, is once again at the center of international tension. More than a century after its completion and 25 years after its return to Panama, the canal is now facing threats from US President Donald Trump, who has vowed to reclaim it. In his recent remarks, Trump claimed Panama overcharges the US Navy for canal passage and alleged, without evidence, that China secretly controls the waterway. “We didn’t give it to China, we gave it to Panama, and we are taking it back!” he declared. Panamanian officials have dismissed these claims, emphasizing that the canal remains firmly under their control. For Panama, the canal isn’t just a waterway – it’s a cornerstone of national identity and a major economic driver. In 2024 alone, the canal generated nearly $5 billion in profits, contributing significantly to the country’s revenue. This isn’t the first time the canal has been a flashpoint. Its history is tangled with US intervention, dating back to 1903 when President Theodore Roosevelt supported Panama’s independence from Colombia to secure canal rights. The US controlled the canal for decades, often limiting Panamanian access to it. Tensions peaked in 1964 when riots broke out over flag-raising rights in the US-controlled Canal Zone, resulting in casualties. The canal was finally handed over to Panama in 1999 under an agreement signed by President Jimmy Carter. However, the US retained the right to intervene militarily to keep the canal operational – a clause that could potentially be exploited today. Panama’s recent $5 billion expansion of the canal has further boosted its economic significance. The larger locks, completed in 2016, allow bigger ships to pass through, doubling traffic and increasing revenue. “We paid for it, we built it, and over 55% of the canal’s revenues come from that investment,” said former canal administrator Jorge Luis Quijano. Trump’s threats have understandably sparked concern in Panama, where the canal is as vital as oil is to Saudi Arabia. “This would be devastating to the country,” said Ovidio Diaz-Espino, a Panamanian author and historian. Panama’s President José Raúl Mulino has firmly rejected Trump’s remarks, stating that the canal “is and will remain Panamanian.” As alarm bells ring, this latest episode highlights the delicate balance between Panama’s economic lifeline and its relationship with Washington.