How did the united states benefit from the construction of the panama canal

The Panama Canal connected the Pacific and the Atlantic Oceans. It established a new international trade route and boosted the U. S. economy with its ability to trade more. Because of the canal, the ships did not have to sail around Cape Horn in South America. The travel distance was cut by almost half so the ships saved a lot on fuel. Carrying less fuel means they could carry more goods.

The United States Navy could travel easily from the Pacific to the Atlantic. It allowed the U. S. Navy to maintain a smaller Navy on both sides and gave the U. S. a tactical advantage with their ability to cross to the other side quickly. Other countries had to travel around Cape Horn.