WEST PALM BEACH, Florida – President-elect Donald Trump sparked global attention Sunday by threatening to reclaim control of the Panama Canal unless Panama addresses what he calls “excessive” usage fees. Trump also expressed concerns about possible Chinese influence over the strategic waterway.
Speaking at AmericaFest in Arizona, Trump criticized Panama’s management of the canal, a critical passage for global trade. “We’re being ripped off at the Panama Canal, just like we’re being ripped off everywhere else,” he told a cheering crowd.
He later posted an image on Truth Social of an American flag flying over a waterway, captioned: “Welcome to the United States Canal!”
Trump Questions Panama’s Control
Trump described the canal’s transfer to Panama in 1999 as a “magnanimous gesture” that came with conditions. “If the moral and legal principles behind this deal aren’t upheld, we’ll demand the canal back—quickly and without question,” he warned.
The Panama Canal, connecting the Atlantic and Pacific Oceans, is a critical trade route. It handles 14,000 ships annually and accounts for 2.5% of global seaborne trade, including U.S. imports of goods from Asia and exports of commodities like liquefied natural gas.
Panama’s Response: Firm and Direct
Panamanian President José Raúl Mulino swiftly rejected Trump’s remarks in a recorded statement. “Every square meter of the Panama Canal belongs to Panama and always will,” Mulino declared. He denied any Chinese control over the canal, emphasizing that its rates are fair and set based on global standards, not whims.
While China does not manage the canal, a Hong Kong-based subsidiary oversees ports at its entrances. Mulino reassured the public that Panama remains the sole administrator of the canal’s operations.
Mulino concluded with a firm message: “Panama’s independence is non-negotiable.”
Trump’s History with Territorial Ambitions
This isn’t Trump’s first controversial statement regarding foreign territories. During his presidency, he floated the idea of purchasing Greenland, an autonomous territory of Denmark, but was rebuffed. Recently, he joked about turning Canada into a U.S. state, though the seriousness of the remark remains unclear.
Trump doubled down Sunday, announcing Ken Howery as his pick for ambassador to Denmark. In a Truth Social post, he reignited the Greenland conversation, writing, “For national security and global freedom, U.S. control of Greenland is an absolute necessity.”
The Bigger Picture
As Trump continues to reshape U.S. foreign policy discussions with bold rhetoric, his comments about the Panama Canal add another layer of complexity. Whether these remarks will lead to actionable policy remains uncertain, but the world is watching closely.