President-elect Donald Trump threatened on Sunday to demand the return of the Panama Canal to US control, drawing immediate pushback from Panama’s president and raising diplomatic tensions over the vital waterway.
“The fees being charged by Panama are ridiculous, highly unfair,” Trump told supporters at a conservative rally in Phoenix, Arizona, his first major public appearance since winning the November 5 election.
Panamanian President José Raúl Mulino swiftly rejected Trump’s claims, asserting that “every square meter” of the canal and surrounding area belongs to Panama.
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In a subsequent post on his Truth Social platform, Trump cited concerns about US commerce and naval deployment capabilities, criticizing what he called “exorbitant prices” for canal usage. He referenced former President Jimmy Carter’s 1977 treaty transferring canal control to Panama as “foolish.”
“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 us, in full,” Trump wrote.
The confrontation comes amid growing Chinese influence in the region, with China ranking as the canal’s second-largest user after the United States. Panama cut diplomatic ties with Taiwan in 2017 during Trump’s first term to strengthen relations with Beijing.
Trump’s remarks came during a 75-minute speech at AmericaFest, a four-day event organized by Turning Point USA that attracted more than 20,000 attendees. He also criticized Canada and Mexico over trade practices and border security.
The US constructed the canal after backing Panama’s 1903 independence from Colombia, maintaining control until December 31, 1999, when it was transferred to Panama under Carter’s treaty agreements.
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