Can Trump's turn the Panama Canal into American Canal?

January 22, 2026,

Can Trump's "Art of the Deal" turn the Panama Canal into the American Canal?   

We doubt it. Trump can't even increase the share price of Trump Media & Technology Company (Ticker: DJT). It is unlikely that he will change the world or its current order. 

For sure, President Trump says that he wants the Panama Canal back. It will take a diplomatic miracle to get it back. President Carter gave it to Panama. That was a huge mistake, but Congress ratified the treaty. Maybe Trump can use his Art of the Deal to make Panama give the canal back, but such a deal sounds almost impossible. Everyone has a price so we will need to learn what is Panama's price for the canal. Trump would have to make Panama some sort of offer that they can't refuse.  

It costs us a lot of money and effort to build what should have been called the American Canal in Panama. In today's money, the cost of building the "American Canal in Panama" (the Panama Canal) would amount to about $12 billion. Back in 1904 - 1914, the construction cost us $375M.  It was the most expensive construction project ever undertaken by the U.S. up to that point.

Brief History of the American Canal in Panama

The American Canal in Panama is one of the greatest engineering feats in history, serving as a vital waterway that connects the Atlantic and Pacific Oceans. Here is a detailed history of the canal's development:

Pre-Columbian Era: Indigenous peoples in the region used overland routes across the Isthmus of Panama to transport goods between the oceans.

16th Century: The Spanish Crown considered building a canal but lacked the technology and resources.

• 1501: Spanish explorer Rodrigo de Bastidas was the first European to navigate along Panama’s coast.
• 1513: Vasco Núñez de Balboa crossed the isthmus, becoming the first European to see the Pacific Ocean, highlighting the region's potential for a transoceanic route.

19th Century: 

• 1819: The Spanish authorized a canal project, but it did not progress due to the independence movements in Latin America.
• 1849-1855: The Panama Railroad was constructed during the California Gold Rush, providing the first efficient crossing between oceans.
• 1879: French engineer Ferdinand de Lesseps, who successfully built the Suez Canal, attempted to build a sea-level canal. However, the project failed in the 1880s due to: 
• Poor Planning: Tropical diseases like malaria and yellow fever decimated workers. 
• Engineering Challenges: The mountainous terrain made a sea-level canal impractical.
• Financial Mismanagement: The project went bankrupt.
• 1881 - 1894. The French initiated construction under Ferdinand de Lesseps but failed due to financial mismanagement and tropical diseases. Approximately 22,000 workers died during that period. The U.S. officially began construction in 1904 after purchasing the failed French project for $40 million. 

20th Century:

• 1903: The U.S. negotiated the **Hay-Bunau-Varilla Treaty** with the newly independent Republic of Panama. Panama gained independence from Colombia with U.S. support.
• 1904: The U.S. acquired the French project’s assets for $40 million and began work on the canal. Under the direction of John Frank Stevens and later George Washington Goethals, the U.S. implemented critical engineering innovations and addressed health crises by controlling mosquitoes that spread malaria and yellow fever. Unlike the French sea-level design, the U.S. opted for a system of locks to lift ships over the isthmus.
• 1914: The canal officially opened on August 15, with the passage of the cargo ship SS Ancon.

Mid-20th Century: Strategic and Economic Importance

• The canal became a vital route for global trade and military operations, especially during World Wars I and II.
• The U.S. maintained control of the canal zone, which caused growing resentment in Panama due to issues of sovereignty and economic inequity.

Late 20th Century: Panamanian Sovereignty

• 1964: Riots erupted over disputes between Panamanians and U.S. authorities, intensifying calls for control over the canal.
• 1977: The Torrijos-Carter Treaties were signed by Panamanian leader Omar Torrijos and U.S. President Jimmy Carter, agreeing to transfer control of the canal to Panama by December 31, 1999.

21st Century: Modernization and Expansion

• 1999: Panama took full control of the canal under the Panama Canal Authority (ACP).
• 2016: The canal's expansion, the Panama Canal Expansion Project (Third Set of Locks), was completed at a cost of $5.4 billion. This expansion allowed larger ships (Neo-Panamax vessels) to transit, doubling the canal's capacity and boosting global trade.
• 2025: President Trump announces to the world that it is time for the U.S. to take back the canal.  

Current Significance

The Panama Canal facilitates approximately 6% of global trade. It plays a strategic role in connecting major shipping routes and remains an essential infrastructure for international commerce. Challenges include increasing competition from alternative routes (e.g., the Arctic and Suez Canal) and climate-related issues like water shortages affecting operations.

Trump: The Art of the Deal

"The Art of the Deal," published in 1987, is a book credited to Donald J. Trump and journalist Tony Schwartz. It combines memoir elements with business advice, offering insights into Trump's early life, career, and deal-making philosophy. 

1. A Week in the Life: The book begins by detailing a typical week for Trump, showcasing his daily activities, meetings, and negotiations, providing a glimpse into his business operations. As we all know by now, the man is a workaholic who works, works, and works.

2. Business Principles: Trump outlines his core business principles, which include:

• Think Big: Aiming for significant projects to maximize impact.
• Maximize Options: Keep multiple avenues open to maintain flexibility.
• Add Value. Understand the market and do marketing to increase value of your brand.

3. Career Highlights: Trump discusses several significant projects, such as:

• Grand Hyatt Hotel: His first major Manhattan development.
• Trump Tower: His flagship building on Fifth Avenue, emphasizing luxury and brand presence.
• Atlantic City Casinos: His now infamous ventures into the gaming industry.

Overall, the book provides a detailed look into Trump's business strategies and the mindset he employed during the early years of his real estate career. The book achieved significant commercial success, reaching number one on The New York Times Best Seller list, where it remained for 13 weeks and stayed on the list for a total of 48 weeks. 

While "The Art of the Deal" is credited to Trump, co-author Tony Schwartz has stated that he was the primary writer of the book. In their agreement, Schwartz received a $250,000 upfront payment and was allocated 50% of the book's royalties. Therefore, both Trump and Schwartz continue to receive royalties from "The Art of the Deal,". The book sold approximately 1.1 million copies shortly after its release. Schwartz reported earning about $1.5 million in royalties within the first few years. In 2016, book sales resurged due to Trump's presidential campaign, and Schwartz reported earning $55,000 in just six months. President Trump's financial disclosures for 2018 and 2019 disclosed earning about $1 million in royalties each year. Over time, and especially during Trump's controversial first presidential term, Schwartz has expressed regret over his involvement with the book and has chosen to donate his royalties to various causes. Schwartz has described writing the book as his "greatest regret in life, without question." 

Can Trump's Art of the Deal help in getting back the Panama Canal?

Maybe. Trump is thinking big with his expansionist doctrine. During his second term, the Second Coming of Trump into America, Trump would annex Canada, acquire Greenland, and retake the Panama Canal. Trump would also take the moon, Mars, and everything in between. It is highly unlikely that Trump will succeed.

Taking the Panama Canal may the easiest deal of all of those ambitions. After all, the U.S. built the canal, and Panama has been lucky of having control of the canal in the last 25 years. Perhaps it is time to  re-capitalize and renovate the canal under a massive new deal that can give the U.S. operational control of the canal for at least a century. 

Let's see what Team Trump can come up with. We have many ideas for sale if they are interested. 

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