Trump threatens to retake Panama Canal, accuses Panama of unfair fees
President-elect Donald Trump on Sunday threatened to reassert US control over the Panama Canal, accusing Panama of charging excessive rates to use the vital Central American passage, which triggered a strong response from Panamanian President Jose Raul Mulino, Reuters reported.
Speaking at an Arizona rally, Trump warned that he would not let the canal fall into the “wrong hands” and raised concerns over Chinese influence. Although China does not control the canal, a subsidiary of Hong Kong-based CK Hutchison Holdings manages two ports at the Caribbean and Pacific entrances.
Trump reiterated the threat hours later in a Truth Social post, claiming, “Has anyone ever heard of the Panama Canal? Because we’re being ripped off at the Panama Canal like we’re being ripped off everywhere else.”
The remarks are a rare instance of a US leader suggesting that a sovereign country should relinquish control of its territory. Trump criticized Panama’s fees as “ridiculous” and “highly unfair,” and said, “It was given to Panama and the people of Panama, but it has provisions. You get to treat us fairly, and they haven’t treated us fairly.” He added that if the “moral and legal” principles of the canal’s transfer were not upheld, the US would demand its return.
In response, Panamanian President Mulino released a recorded statement reaffirming Panama’s sovereignty over the canal, stating, “Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue belonging (to Panama).”
The canal, which facilitates about 2.5% of global seaborne trade, was transferred to Panama in 1999 after decades of US control under agreements signed in 1977. Although Trump’s remarks have raised concerns, it remains unclear how he might attempt to regain control, as international law offers no grounds for such a claim.
