President-elect Donald Trump threatened to retake control of the Panama Canal during a Sunday speech in Arizona, citing high fees and Chinese influence over the American-made canal.
“We’re being ripped off at the Panama Canal,” Trump told supporters at Turning Point USA’s AmericaFest. “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 the United States of America, in full, quickly and without question.”
Panama’s conservative President José Raúl Mulino responded with a firm defense of his nation’s use of the canal, gifted to them by the United States in the 1970s.
“Every square meter of the canal belongs to Panama and will continue to belong to Panama,” Mulino said. “The tariffs are not set on a whim. Panamanians may have different views on many issues, but when it comes to our canal, and our sovereignty, we will all unite under our Panamanian flag.”
Trump responded on social media, posting “We’ll see about that!” alongside an image of a U.S. flag in the canal zone captioned “Welcome to the United States Canal!”
We’ll see about that!
Donald Trump Truth Social 05:12 PM EST 12/22/24 pic.twitter.com/Vkp8r3iwJg
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) December 22, 2024
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) December 22, 2024
Ships that use the canal are charged fees ranging from $0.50 to $300,000 per vessel. The United States uses the Panama Canal for three-quarters of its cargo traffic.
“When President Jimmy Carter foolishly gave it away, for One Dollar, during his term in Office, it was solely for Panama to manage, not China, or anyone else,” Trump wrote on Truth Social. “It was likewise not given for Panama to charge the United States, its Navy, and corporations, doing business within our Country, exorbitant prices and rates of passage.”
The canal, built by the U.S. in the early 1900s, was transferred to Panama in 1999 under Carter’s 1977 treaty. It generates approximately one-fifth of Panama’s government revenue, with China serving as its second-largest user. A Hong Kong-based Chinese company controls two of five ports adjacent to the waterway.
Trump argued the U.S. maintains “a vested interest in the secure, efficient, and reliable operation of the Panama Canal” and “would and will NEVER let it fall into the wrong hands!”