Trump threatens to reclaim Panama Canal, sparks tension with Panama

Donald Trump, the winner of the recent U.S. presidential election, is making waves again, this time by demanding that Panama either reduce the fees for using the Panama Canal or return control of the canal to the United States. 

He has accused Panama of unfairly charging U.S. ships and other vessels.

Speaking at a rally in Arizona on Sunday, Trump said, “The fees Panama is charging are ridiculous, completely unfair.”

He also added, “This fraud against our country must stop immediately,” as he spoke about his upcoming return to the White House.

Trump’s statements drew a quick response from Panama’s president, who made it clear that Panama has full control over the canal and its surrounding areas, not the U.S.

Panama‍‍`s President José Raúl Mulino responded by saying that every square meter of the canal belongs to Panama, emphasizing that the country’s sovereignty and independence are not up for debate.

Trump’s comments were made during a speech to supporters of Turning Point USA, a conservative group that backed his 2024 presidential campaign.

This type of remark—about taking control of another country’s territory—is unusual for a U.S. leader.

Although Trump did not provide details on how he would go about reclaiming the Panama Canal, his words suggest possible changes in U.S. foreign policy after his inauguration on January 20.

Earlier, Trump had made a social media post where he referred to the Panama Canal as a "critical national asset" for the U.S. He warned in his Sunday post that if Panama doesn’t reduce the shipping fees, “we will soon demand the full and unquestioned return of the Panama Canal.”

The U.S. and Panama have a long history of cooperation, but last year in 2023, Panama began forming new economic ties with China, which caused the U.S. to rethink its relationship with the Central American country.

The Panama Canal is vital for global trade as it connects the Atlantic and Pacific Oceans. 

The 51-mile (82 km) canal plays a key role in the transportation of goods around the world, making Panama’s geopolitical position extremely important.

After several years of closure, the canal was expanded and reopened in June 2016 to allow more ships to pass through.

Originally built in the early 1900s, the Panama Canal was under U.S. control until 1977. After that, a joint agreement allowed for a gradual handover to Panama, and in 1999, Panama gained full control of the canal.

Approximately 14,000 ships pass through the Panama Canal each year, carrying everything from cars to natural gas to military supplies.

In his Arizona speech, Trump didn’t just focus on Panama. 

He also criticized Mexico and Canada, accusing both nations of allowing drugs and illegal immigrants to flow into the U.S. However, he had kind words for Mexico’s President Claudia Sheinbaum, describing her as a "wonderful woman."

The rally where Trump made these remarks was part of Turning Point USA’s annual gathering, which is considered one of the largest conservative events in the U.S.

This election season, Trump and the Republican Party put a lot of effort into key swing states, helping to secure his victory.

This was Trump’s first public address since Congress passed a bill on Friday to avoid a government shutdown. 

However, he didn’t mention the shutdown during his speech.

Instead, he stuck to his key campaign topics—immigration, crime, and foreign trade—which continue to resonate with his supporters.