President-elect Donald Trump threatened to reassert U.S. control over the Panama Canal on Sunday, claiming Panama has been charging excessive rates for passage through the strategic waterway. His remarks drew a sharp rebuttal from Panamanian President Jose Raul Mulino.
Speaking to supporters in Arizona, Trump warned against potential Chinese influence over the canal, insisting he would not allow it to fall into “the wrong hands.” After the event, he shared a post on Truth Social featuring an image of an American flag over water, captioned, “Welcome to the United States Canal!”
“Has anyone ever heard of the Panama Canal?” Trump asked during the AmericaFest event, organized by Turning Point, a conservative group. “Because we’re being ripped off at the Panama Canal like we’re being ripped off everywhere else.” His comments marked a rare instance of a U.S. leader openly suggesting that a sovereign country might relinquish control over its territory, signaling a potential shift in U.S. diplomatic approach under Trump.
“The canal was given to Panama and the people of Panama, but it has provisions,” he stated, referencing the treaty under which the U.S. transferred control of the canal to Panama decades ago. “If the moral and legal principles of this magnanimous gesture are not followed, we may demand that the Panama Canal be returned to us, quickly and without question.”
In response, President Mulino released a recorded message asserting Panama’s independence was non-negotiable, denying any Chinese influence in managing the canal. He defended the canal’s passage rates, stating they were not arbitrary.
While China does not control the canal itself, a subsidiary of Hong Kong-based CK Hutchison Holdings manages two ports at the canal’s Caribbean and Pacific entrances. Historically, the U.S. built and administered the canal until the 1977 treaties facilitated its return to Panama, culminating in the complete transfer of control in 1999.
“Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue to belong to Panama,” Mulino emphasized in his statement on X.
Trump retorted, “We’ll see about that!”
The Panama Canal is vital for global trade, handling up to 14,000 vessels annually and accounting for 2.5% of worldwide seaborne trade, pivotal for U.S. imports and exports.
It remains unclear how Trump would attempt to regain control of the canal, as international law would likely not support any claim. This isn’t the first time Trump has floated ideas of territorial acquisition; he has previously proposed making Canada a U.S. state and expressed interest in purchasing Greenland during his presidency, a notion rejected by Danish officials.
On Sunday, he reiterated the importance of Greenland, stating that ownership is vital for national security, alongside his announcement of Ken Howery as his ambassador to Denmark. “For purposes of National Security and Freedom throughout the World, the United States of America feels that the ownership and control of Greenland is an absolute necessity,” he wrote on Truth Social.
Credit: Reuters
