U.S. Rep. Dusty Johnson R-SD recently announced plans to introduce legislation that would give President-elect Donald Trump the authority to negotiate a potential purchase of the Panama Canal, provided he can secure a favorable deal. Johnson made these remarks during a tele-town hall with his constituents on Wednesday, following his earlier discussion about the idea on Fox News. The bill, which Johnson plans to introduce on Friday, would allow Trump to explore the purchase, a concept that has stirred significant discussion.
Johnson expressed uncertainty about the proposal but emphasized the need to give the president-elect the flexibility to evaluate it. Trump himself made headlines earlier in the week by suggesting military force could be used to secure control of the canal.
The Panama Canal, a key global trade route, was originally constructed by the U.S. in the early 20th century but was fully transferred to Panama in 1999 under treaties signed by President Jimmy Carter.
The canal’s control has become a point of concern for some U.S. policymakers, especially with increasing Chinese influence in the region.
A company based in Hong Kong, CK Hutchison Holdings, operates seaports at both ends of the canal. As China continues to expand its global reach, there are growing fears about its potential influence over the canal, which handles a substantial portion of U.S. trade. Johnson cited the canal’s strategic importance, noting that the U.S. relies on it for about 40% of its ocean shipping container traffic.
Johnson argued that Trump’s focus on addressing the U.S. trade deficit could be undermined if the canal’s future becomes uncertain, emphasizing the need for the U.S. to have reliable control over such a critical piece of infrastructure.