US President-elect Donald Trump threatened on Sunday to restore US control of the Panama Canal, accusing Panama of charging excessive rates to use the Central American passage. In his comments, the president of Panama, José Raúl Mulino, was sharply criticized.
On Sunday, Trump, speaking to a crowd of supporters in Arizona, also said he would not let the canal fall into the “wrong hands,” warning of China's potential influence over the passage.
China does not control or administer the canal, but Hong Kong-based subsidiary CK Hutchison Holdings has long operated two ports located at the Caribbean and Pacific entrances to the canal.
The president-elect's comments came hours after he made a similar threat against Panama in a post on Truth Social on Saturday evening.
“Has anyone ever heard of the Panama Canal?” Trump said Sunday during AmericaFest, an annual event organized by the allied conservative group Turning Point. “Because they're cheating us on the Panama Canal, just like they're cheating us everywhere else.”
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Trump's comments were an extremely rare example of an American leader saying he could persuade a sovereign country to give up territory. It also highlights the expected change in US diplomacy under Trump, who in the past has not shied away from threatening allies and using belligerent rhetoric in contacts with his counterparts.
“Panama's fees are absurd and highly unfair,” Trump said.
“It was given to Panama and the people of Panama, but it contains provisions. You can treat us fairly, and they didn't treat us fairly.
“If the principles of this generous gesture of giving are not respected, both morally and legally, we will demand the return of the Panama Canal in its entirety, quickly and without reservation.”
In a recorded message released Sunday afternoon by Panamanian President Mulino, the nation's leader declared that Panama's independence is non-negotiable and that China has no influence over the canal's administration. He also defended the toll rates charged by Panama, saying they were not set “on a whim.”
“Every square meter of the Panama Canal and surrounding area belongs to Panama and will continue to belong (to Panama),” Mulino said in a statement published on X.
Several other Panamanian politicians, including members of the opposition, also criticized Trump's comments on social media.
The United States largely built the canal and managed the territory surrounding the passage for decades. However, in 1977, the United States and Panama signed two agreements that paved the way for the canal to return to full Panamanian control. The United States transferred control of the crossing in 1999, after a period of joint administration.
The waterway, through which up to 14,000 ships pass annually, accounts for 2.5 percent of global maritime trade and is critical to U.S. imports of cars and trade goods via container ships from Asia and to U.S. exports of goods, including liquefied natural gas products.
It is unclear how Trump would seek to regain control of the canal, and under international law he would have no recourse if he decided to use the passage.
This is not the first time Trump has openly considered territorial expansion.
He has repeatedly mused about turning Canada into an American state in recent weeks, although it is unclear how serious he is about the matter. During his first term, Trump expressed interest in purchasing Greenland, an autonomous territory of Denmark. Before any talks took place, the Danish authorities publicly rejected him.