President-elect Donald Trump has sparked controversy by threatening to reclaim U.S. control of the Panama Canal, accusing Panama of charging excessive usage fees and warning of potential Chinese influence.
Speaking at AmericaFest in Arizona, Trump declared, “We’re being ripped off at the Panama Canal like we’re being ripped off everywhere else.” He also shared an image on Truth Social captioned, “Welcome to the United States Canal!”
The canal, a vital passage for global trade, accounts for 2.5% of global seaborne trade and facilitates the movement of autos, container ships, and liquefied natural gas. It was built and managed by the U.S. for decades before being handed over to Panama in 1999 under a bilateral agreement.
Trump suggested that Panama might have violated provisions of the handover and warned, "If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, quickly and without question."
Panama’s President Jose Raul Mulino responded firmly, stating that the canal remains under Panamanian sovereignty and dismissing Trump’s concerns about Chinese influence. Mulino added that passage fees are determined based on costs and market factors, not whims.
“Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue belonging (to Panama),” Mulino emphasized in a statement on X. Trump responded, “We’ll see about that!”
