US President-elect Donald Trump hinted on Sunday that his administration might seek to regain control of the Panama Canal, which he claimed the United States “foolishly” handed over to its Central American ally.
Trump criticized the fees imposed on ships using the critical waterway, calling them “ridiculous.” Speaking at a rally in Arizona, he lamented, “We’re being ripped off at the Panama Canal” and expressed regret that the canal was “foolishly given away.”
He further declared that if the principles of this “magnanimous gesture of giving” were not upheld, his administration would demand the canal’s return to the United States “in full, quickly, and without question.” Addressing Panama directly, he warned, “I’m not going to stand for it. So to the officials of Panama, please be guided accordingly.”
The canal, built by the United States in the early 1900s to facilitate the transit of commercial and military vessels, was relinquished to Panama on December 31, 1999, under a 1977 treaty signed by President Jimmy Carter.
In 2023, droughts in Central America significantly impacted the canal’s operations, forcing reductions in daily ship crossings and an increase in reservation fees. While conditions normalized later in the year, administrators have indicated that further fee hikes are likely in the coming year.
Panama’s Response
Shortly after Trump’s remarks at the AmericaFest in Arizona, Panamanian President Jose Raul Mulino responded with a video statement asserting that “every square meter of the canal belongs to Panama and will continue to belong” to the country.
Without naming Trump, Mulino defended the rising fees, explaining that they are determined by experts based on operational costs and market dynamics, not arbitrarily. He highlighted Panama’s independent efforts to expand the canal and emphasized that increased shipping fees help finance these improvements.
“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,” Mulino said.
Though Mulino, a conservative populist, shares ideological similarities with Trump, he underscored Panama’s strong stance on maintaining sovereignty over the canal. The waterway, which generates about one-fifth of Panama’s annual revenue, remains a cornerstone of the nation’s economy and its strategic alliance with the United States.
