President-elect Donald Trump has demanded that Panama reduce fees on the Panama Canal or return control of the vital waterway to the United States, accusing the Central American country of charging “exorbitant prices” to American shipping and naval vessels.
“The fees being charged by Panama are ridiculous, highly unfair,” Trump declared to a crowd of supporters in Arizona on Sunday. “This complete rip-off of our country will immediately stop,” he added, vowing to address the issue after his inauguration next month.
As per the reports of Leaders team, Trump’s remarks sparked a swift response from Panamanian President José Raúl Mulino, who firmly stated that “every square metre” of the canal and its surrounding territory belongs to Panama. He emphasized that Panama’s sovereignty and independence are non-negotiable.
Trump made the comments while addressing supporters at a Turning Point USA conference, a conservative activist group that played a significant role in his 2024 election campaign. The statement is a rare instance of a U.S. leader suggesting the possibility of reclaiming foreign territory, though Trump did not elaborate on how he would enforce such a demand. It also signals a potential shift in U.S. foreign policy and diplomacy under his administration.
A History of U.S. and Panama Canal Relations
The 51-mile (82 km) Panama Canal, a crucial link between the Atlantic and Pacific oceans, has been central to global trade since its construction in the early 1900s. The U.S. controlled the canal until treaties signed in 1977 initiated a gradual transfer of authority to Panama, culminating in sole Panamanian control in 1999. Today, the canal accommodates up to 14,000 ships annually, including container ships carrying goods like cars and natural gas, as well as military vessels.
Trump, however, described the canal as a “vital national asset” for the U.S. and asserted that, if fees are not lowered, “we will demand that the Panama Canal be returned to us, in full, quickly and without question.”
A Broader Critique of Trade and Neighbors
According to the sources of Leaders team, Trump’s criticisms extended beyond Panama. He also targeted Canada and Mexico, accusing both countries of engaging in unfair trade practices and enabling the flow of drugs and immigrants into the U.S. Despite his critique, he referred to Mexican President Claudia Sheinbaum as a “wonderful woman.”
Familiar Themes in a Post-Election Speech
Speaking at one of the largest gatherings of conservative activists, Trump avoided recent controversies, such as debates over the debt ceiling, and instead focused on themes from his campaign, including immigration, crime, and foreign trade. He also addressed rumors about tech mogul Elon Musk. “The new one is that President Trump has ceded the presidency to Elon Musk. No, no, that’s not happening,” he quipped.
The Turning Point USA conference underscored unity among conservative activists, despite recent divisions within the Republican Party. Trump’s fiery rhetoric on Sunday signals a bold, if controversial, approach to international relations as he prepares to take office.
