US President-elect Donald Trump has threatened to demand the return of the Panama Canal to US control, accusing Panama of charging “ridiculous” fees on American ships and hinting at China’s growing influence in the region, Al Jazeera reports.
The statements have drawn sharp rebukes from Panama and raised concerns about a potential shift in US foreign policy.
Trump took to his Truth Social platform on Saturday, stating that the US Navy and Commerce have been treated “unfair and injudiciously” due to the Canal’s fees. He doubled down on his claims during a speech in Arizona on Sunday, asserting that the US was being “ripped off at the Panama Canal like we’re being ripped off everywhere else.”
The Panama Canal, largely constructed by the US in 1914, was fully handed over to Panama in 1999 after a period of joint administration. Trump’s comments suggest he views this transfer as a mistake. He also raised concerns about China’s potential involvement, stating that the canal “was solely for Panama to manage, not China, or anyone else.”
“We would and will NEVER let it fall into the wrong hands!” Trump wrote.
He went further, claiming the canal was given to Panama as a “token of cooperation” and threatening to demand its return “in full, and without question” if what he deems are moral and legal principles are not followed.
Panama’s President Jose Raul Mulino rejected Trump’s statements.
“Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue belonging so,” he said in a recorded message, denying any Chinese influence over the Canal and insisted that fees are not determined arbitrarily.
The Panama Canal is a critical component of Panama’s economy, generating around one-fifth of the government’s annual revenue. The Panama Canal Authority reported record revenues of nearly $5 billion in the last fiscal year.
Trump’s rhetoric underscores an anticipated shift in US diplomacy as he prepares to assume office on January 20. Known for his confrontational style, Trump has historically not hesitated to threaten allies and employ strong rhetoric when dealing with international counterparts. This stance is further evidenced by his recent threat to impose tariffs on Mexican and Canadian imports on his first day in office to address the issue of undocumented migrants and drug trafficking, a move he declared was justified because those nations “have the absolute right and power to easily solve this long-simmering problem.”
Some 5% of global maritime traffic travels through the Panama Canal, making it a vital waterway for trade. It remains unclear how Trump intends to reclaim control of the canal. Experts note he has no legal grounds under international law to seize the passage. Trump’s comments have raised serious questions about the future of US-Panama relations and his approach to international diplomacy.
