Trump Picks Fight With Panama’s President Over Control of Canal

President-elect Donald Trump’s Panama Canal Remarks Spark Controversy

Donald Trump, the President-elect of the United States, devoted a significant portion of his Sunday to reflecting on whether the U.S. should reclaim control of the Panama Canal. This topic stirred tensions as Trump engaged in a war of words with Panama’s President over the management and fees associated with the canal.

• Trump expressed dissatisfaction with Panama’s management of the canal, citing high fees for American ships.
• He hinted at a potential U.S. demand for the canal’s return, referencing historical agreements.
• Panama’s President, José Raúl Mulino, firmly rejected Trump’s assertions and reaffirmed Panama’s sovereignty.
• Trump has previously shown interest in expanding U.S. territories, including past comments on Greenland and Canada.

Dispute Over Panama Canal Control

On Sunday, President-elect Donald Trump provoked controversy by questioning the United States’ relinquishment of the Panama Canal. He took to social media to challenge the Panamanian President’s resistance to his demands for control over the canal, which is vital for international trade. Referring to it as the “United States Canal,” Trump sparked a diplomatic spat.

Trump’s primary grievance centered on what he described as “exorbitant” fees levied by Panama on American vessels using the canal. “Has anyone ever heard of the Panama Canal?” he asked during a Turning Point USA gathering in Arizona. “Because we’re being ripped off at the Panama Canal, just like everywhere else.” This statement echoed his broader stance on unfair trade practices affecting the U.S.

He further accused Panama of charging American entities excessive fees for canal passage while suggesting that China had undue influence over the waterway. “The United States is the number one user of the Panama Canal, with over 72% of transits heading to or from U.S. ports,” Trump stated. “Think of that—we built it, and we’re the main users. They gave it away.”

The Panama Canal, completed in 1914, was under U.S. control for decades. The transfer back to Panama took place after former President Jimmy Carter signed treaties in 1977, which came into effect in 1999.

Historical Context and Current Tensions

On Sunday, Trump suggested that Panama was not honoring its commitments. “If the principles, both moral and legal, of this generous gesture are not adhered to, then we will demand the Panama Canal be returned to the United States swiftly and without question,” he stated.

“When President Jimmy Carter foolishly gave it away—gave it away for $1, $1—during his term in office, it was solely for Panama to manage, not for China or any other country. You see what’s happening there. China!”

The canal is managed by the Panama Canal Authority, a Panamanian governmental organization. Though China does not directly administer the canal, CK Hutchison Holdings, a Hong Kong-based firm, operates two ports at its entrances, as reported by Reuters.

Panama’s Firm Response

Panama’s President, José Raúl Mulino, responded to Trump’s remarks through a video message posted on X, asserting, “I want to clearly state that every square meter of the Panama Canal and its adjoining zone is Panama’s and will remain so.” He emphasized that Panama’s sovereignty and independence are non-negotiable.

Mulino also refuted Trump’s claim of foreign control over the canal, including China, and defended the fees imposed for canal transit. In retaliation, Trump utilized his Truth Social platform to taunt the Panamanian leader, declaring, “we’ll see about that!” He further shared an image depicting a large American flag in the canal, labeling it the “United States Canal.”

Past Attempts to Expand U.S. Territories

This is not the first occasion where Trump has shown interest in expanding U.S. borders or acquiring foreign lands. In 2019, the Wall Street Journal reported Trump’s interest in purchasing Greenland, the Danish autonomous territory in the North Atlantic.

Since his reelection in November, Trump has repeatedly joked about making Canada the “51st state,” even reportedly jesting about the proposal to Canadian Prime Minister Justin Trudeau.

The Trump transition team did not immediately respond to a request for comment from the Daily Beast.