Donald Trump has demanded that the Panama Canal be returned to the United States if Panama does not manage it in a way acceptable to him – accusing the Central American country of charging exorbitant fees for ships using the channel that connects the oceans.
“The fees charged by Panama are ridiculous, especially knowing the extraordinary generosity the United States has given to Panama,” Trump wrote on his Truth Social platform late Saturday, before the start of his second term as U.S. president. More than a month. “This complete ‘theft’ of our country will stop immediately…”
Trump also warned in the Evening Post that he would not let the canal fall into “the wrong hands.” He appeared to warn of China’s potential influence on the channel, writing that the canal should not be managed by China.
Trump said the Panama Canal is an “important national asset” of the United States and “vital” to commerce and national security.
Panamanian President Jose Raul Mulino later rebuffed Trump’s threat, saying the canal’s transit fees were not inflated and its sovereignty was not renegotiable.
“Every square meter of the Panama Canal and its immediate vicinity is part of Panama and will continue to be so,” Mulino said in a statement on the video on Twitter/X on Sunday.
Trump’s warning comes days after the president-elect mused during an early morning thoughtstorm that Canadians might want Canada to become the 51st U.S. state and derided Prime Minister Justin Trudeau as “Governor Trudeau.” ”.
Trump’s Panama mentality highlights an expected shift in U.S. diplomacy since he took office in January, particularly with regard to China and European security. On Friday, the Financial Times reported that Trump’s team had told European officials that he would ask NATO members to increase defense spending to 5% of GDP.
However, Trump’s verbal threat to Panama comes 25 years after the United States handed over full control of the canal to Panama after a period of joint management.
In 1977, President Jimmy Carter negotiated the Torrijos-Carter Treaty and the Neutrality Pact, which gave Panama control of the canal and enabled the United States to defend the neutrality of the canal. The canal is currently managed by the Panama Canal Authority.
The United States completed the 51-mile canal across the Central American isthmus in 1914 and remains the canal’s largest customer, handling about three-quarters of the cargo that transits each year.
China is the canal’s second-largest customer, with a Hong Kong-based Chinese company controlling two of the five ports near the canal, one on each side.
But a prolonged drought has hampered the canal’s ability to transport ships between the Atlantic and Pacific oceans. National Economic Council Director Lael Brainard said last week that transportation disruptions are exacerbating supply chain pressures.
According to the Panama Canal Authority, ship throughput in the Panama Canal fell by 29% last fiscal year due to a severe drought. From October 2023 to September 2024, only 9,944 ships will pass through the canal, compared with 14,080 the previous year.
Trump said in the post that the canal was in danger of falling into the wrong hands and said the canal was not managed by China.
“This is not for the benefit of others, but just as a symbol of cooperation with us and Panama,” Trump said.
“If the moral and legal principles of this generous donation gesture are not adhered to, then we will demand that the Panama Canal be returned to us in its entirety without question. Panamanian officials please guide us!
A Panamanian government official told Bloomberg late Saturday that he was aware of Trump’s statement and would provide a formal response in the coming days.
Last month, Nicaraguan President Daniel Ortega unveiled plans to build a 276.5-mile (445-kilometer) transoceanic waterway that would provide an alternative to those in neighboring Panama.
In a proposal to Chinese investors at a regional business summit, Ortega said “the situation across Panama is becoming more complex every day” and said Nicaragua’s canal project could attract investment from China and the United States, noting that the U.S. has so far Construction of the Nicaragua Canal has been considered dating back to 1854.
Reporting contributed by Reuters