On 31 December Panama celebrated the 25th anniversary of reclaiming the Panama Canal from US control. President José Raúl Mulino has rejected recent comments by Donald Trump suggesting that the USA might try to reclaim it; he commented, ‘(It) will stay in our hands for ever’. The transfer of the canal in 1999, ending 85 years of US administration, was hailed as a landmark moment in Panamanian sovereignty. The canal, which remains a crucial global shipping route, is vital to the country’s economy, accounting for about 20% of its annual revenue. Challenges emerged in 2023 as droughts reduced transit capacity, forcing higher shipping fees. Although operations have normalised since then, price increases are anticipated next year.