The Panama Canal Was Not “Built by Americans, for Americans”

During Trump’s State of the Union address last night he claimed, “The Panama Canal was built by Americans for Americans, not for others, but others could use it. But it was built at tremendous cost of American blood and treasure. Thirty-eight thousand workers died building the Panama Canal. We’re taking it back.”

Unfortunately for Trump, he’s completely wrong.

If you don’t know what we’re talking about, here’s a History Channel video about the Panama Canal.

Anyway, Trump’s statement contains multiple inaccuracies. Here’s a breakdown:

Claim: “The Panama Canal was built by Americans for Americans.”

The French initiated construction in 1881, led by Ferdinand de Lesseps, the same engineer behind the Suez Canal.The U.S. took over in 1904, but the canal was always intended as an international waterway, not solely for American use.

From the beginning, ships of all nations were allowed passage, though the U.S. controlled its operations – and collected tolls! In fact, allowing everyone to go through so they could be charged money was part of the plan from the beginning to justify the investment.

Claim: “Thirty-eight thousand workers died building the Panama Canal.”

Historical records estimate 25,000–30,000 total deaths, including both the French and American phases.

• French era (1881–1889): About 22,000 deaths, mainly from yellow fever, malaria, and accidents.
• American era (1904–1914): Approximately 5,600 deaths, significantly lower due to U.S.-led disease control efforts.

Claim: “It was built at tremendous cost of American blood and treasure.”

This is the most infuriating part of the whole assertion. Trump is trying to claim for the USA all of the death and sacrifice it took to build the canal, however well over 95% of the fatalities were West Indian, French, Spanish, Italian, and other foreign workers.

Most American workers were supervisors, engineers, and administrators, and they faced much lower fatality rates.The human cost was overwhelmingly borne by West Indian and European laborers, not Americans.

While the U.S. invested about $375 million (equivalent to ~$10 billion today), the Panama Canal was a wildly profitable venture for the United States, both in direct financial terms and in broader economic and strategic contexts.

Claim: “We’re taking it back.”

The U.S. voluntarily transferred control of the canal to Panama via the Torrijos-Carter Treaties (1977), signed by President Jimmy Carter and Panamanian leader Omar Torrijos.

The canal was fully transferred to Panama over 20 years later on December 31, 1999. This was a negotiated and internationally recognized agreement, not a loss of territory.

Bottom Line

The Panama Canal was an international project, not exclusively built “for Americans” or “by Americans” – unless you’re generally referring to people in either North or South America.

The death toll was exaggerated, and the vast number of casualties were non-Americans.

The US reaped incredible ROI on the project for many years.

The U.S. willingly transferred control, and Panama legally owns the canal today. Any suggestion of “taking it back” would mean violating an international treaty and attempting to seize sovereign Panamanian territory. Which would be an act of war.