Phoenix, Arizona: President-elect Donald Trump has threatened to reassert U.S. control over the Panama Canal, accusing Panama of imposing excessive passage fees. Trump’s remarks, made during an appearance at AmericaFest in Arizona, sparked a sharp response from Panamanian President Jose Raul Mulino.
In his speech, Trump warned about potential Chinese influence over the canal, stating, “I will not let the canal fall into the wrong hands.” Following the event, Trump posted on Truth Social an image of an American flag flying over a narrow waterway, captioned: “Welcome to the United States Canal!”
During his speech, Trump questioned the management of the canal, saying, “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.” He also asserted that the transfer of the canal to Panama decades ago came with conditions that must be adhered to.
“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,” Trump declared.
Donald Trump said that the US could reassert control over the Panama Canal, accusing Panama of charging excessive rates to use the passage https://t.co/y8mSIIxGwW pic.twitter.com/mu3nTyMNO1
— Reuters (@Reuters) December 23, 2024
Panama’s Firm Response
Panama’s President Jose Raul Mulino issued a recorded statement later on Sunday, emphasizing that the nation’s independence and sovereignty were “non-negotiable.” He also addressed allegations of Chinese influence, clarifying that China has no role in managing the canal.
“Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue belonging to Panama,” Mulino stated firmly. He defended Panama’s toll rates, describing them as fair and rational.
While China does not control the canal, a subsidiary of Hong Kong-based CK Hutchison Holdings manages ports at the canal’s Caribbean and Pacific entrances.
Historical Context and Strategic Importance
The Panama Canal, constructed largely by the United States, was under U.S. control until 1999, following a 1977 treaty between the two nations. The agreement transferred full control of the waterway to Panama after a transitional period of joint administration.
The canal is a vital passage, facilitating 2.5% of global seaborne trade. It supports the movement of 14,000 ships annually, playing a critical role in U.S. imports and exports, including liquefied natural gas, automobiles, and containerized goods from Asia.
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Broader Context of Territorial Aspirations
This is not the first time Trump has raised the possibility of expanding U.S. territory. During his presidency from 2017 to 2021, he publicly expressed interest in purchasing Greenland from Denmark, a move that was met with strong rejection from Danish authorities.
On Sunday, Trump reiterated the importance of Greenland in a statement announcing his nomination of Ken Howery as 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.
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Trump’s rhetoric on the Panama Canal underscores his willingness to challenge traditional diplomatic norms and assert U.S. interests aggressively, potentially setting the stage for tensions with both allies and adversaries.
