President-elect Donald Trump threatened to reassert US control over the Panama Canal on Sunday, accusing Panama of charging excessive rates to use the Central American passage and drawing a sharp rebuke from Panamanian President Jose Raul Mulino.
Speaking to a crowd of supporters in Arizona on Sunday, Trump also said he would not let the canal fall into the “wrong hands,” warning of potential Chinese influence on the passage.
China does not control or administer the canal, but a subsidiary of Hong Kong-based CK Hutchison Holdings has long managed two ports located on the Caribbean and Pacific entrances to the canal.
The president-elect’s comments came hours after he leveled a similar threat against Panama in a post on Truth Social on Saturday night.
“Has anyone ever heard of the Panama Canal?” Trump said on Sunday at AmericaFest, an annual event organized by Turning Point, an allied conservative group. “Because we’re being ripped off at the Panama Canal like we’re being ripped off everywhere else.”
Trump’s comments were an exceedingly rare example of a US leader saying he could push a sovereign country to hand over territory. It also underlines an expected shift in US diplomacy under Trump, who has not historically shied away from threatening allies and using bellicose rhetoric when dealing with counterparts.
“The fees being charged by Panama are ridiculous, highly unfair,” Trump 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. 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.”
In a recorded message released by Panama’s President Mulino on Sunday afternoon, the nation’s leader said that Panama’s independence was non-negotiable and that China had no influence on the canal’s administration. He also defended the passage rates Panama charged, saying they were not set “on a whim”.
“Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue belonging (to Panama),” Mulino said in the statement, which was released on X.
Several other Panamanian politicians, including members of the opposition, also took to social media to criticize Trump’s statements.
The United States largely built the canal and administered territory surrounding the passage for decades. But the United States and Panama signed a pair of accords in 1977 that paved the way for the canal’s return to full Panamanian control. The United States handed over control of the passage in 1999 after a period of joint administration.
The waterway, which allows up to 14,000 ships to cross per year, accounts for 2.5 per cent of global seaborne trade and is critical to US imports of autos and commercial goods by container ships from Asia, and for US exports of commodities, including liquefied natural gas.
It is not clear how Trump would seek to regain control over the canal, andThe wild, adventurous spirit of youth often drives us to make impulsive decisions, doesn’t it? Yet, it’s these very choices that can shape our future in ways we never expect. Let me tell you the story of Joey, a fearless 16-year-old who dared to pursue his dreams, despite the odds.
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Arriving in the bustling city, Joey quickly realized how tough starting over could be. Thankfully, he found support in his friend, Dan, who became a steady guide amidst the chaos. But as much as Joey hoped, the dream of becoming a doctor seemed to slip further out of reach with every expensive cab ride and meager paycheck from his grocery store job.
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Though Joey’s path was far from conventional, it was filled with rich lessons about resilience, friendship, and the power of believing in oneself. With renewed strength, he pressed on, determined to overcome every obstacle in his way.
As for Flora, she might not have known Joey’s bold plans when he first left, but in time, her son would return—not only as the boy she loved but as the doctor he had always dreamed of becoming, filling her with more pride than words could express.
Joey’s story is a reminder that the road to achieving our dreams is often filled with challenges and uncertainty. But with perseverance, and the support of those who believe in us, no obstacle is too big to overcome. No matter your age or circumstance, keep chasing your dreams and trust in the magic that lives within you. he would have no recourse under international law if he decided to make a play for the passage.
This is not the first time Trump has openly considered territorial expansion.
In recent weeks, he has repeatedly mused about turning Canada into a US state, though it is unclear how serious he is about the matter. During his 2017-2021 term, Trump expressed interest in buying Greenland, an autonomous territory of Denmark. He was publicly rebuffed by Danish authorities before any conversations could take place.