Donald Trump has warned that the United States could seize back the Panama Canal unless the country agrees to lower its costs and counter Chinese influence.
In a post on Truth Social, the incoming president urged the Panamanian government to start taking care of the canal or face the consequences.
He wrote:
The United States has a vested interest in the secure, efficient, and reliable operation of the Panama Canal, and that was always understood. We would and will NEVER let it fall into the wrong hands! It was not given for the benefit of others, but merely as a token of cooperation with us and Panama.
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, and without question. To the Officials of Panama, please be guided accordingly!
Trump later followed up with another post explaining its role preserving America’s economic and national security:
The Panama Canal is considered a VITAL National Asset for the United States, due to its critical role to America’s Economy and National Security. A secure Panama Canal is crucial for U.S. Commerce, and rapid deployment of the Navy, from the Atlantic to the Pacific, and drastically cuts shipping times to U.S. ports.
The United States is the Number One user of the Canal, with over 70 percent of all transits heading to, or from, U.S. ports. Considered one of the Wonders of the Modern World, the Panama Canal opened for business 110 years ago, and was built at HUGE cost to the United States in lives and treasure – 38,000 American men died from infected mosquitos in the jungles during construction.
Teddy Roosevelt was President of the United States at the time of its building, and understood the strength of Naval Power and Trade. When President Jimmy Carter foolishly gave it away, for One Dollar, during his term in Office, it was solely for Panama to manage, not China, or anyone else.
It was likewise not given for Panama to charge the United States, its Navy, and corporations, doing business within our Country, exorbitant prices and rates of passage. Our Navy and Commerce have been treated in a very unfair and injudicious way.
The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S. This complete “rip-off” of our Country will immediately stop….
Panamanian officials have yet to respond to Trump’s warning, although it will be taken extremely seriously given the outsized role in plays in the country’s economy.
During his first term in office, Trump met with former Panamanian President Juan Carlos Varela where he mentioned America’s involvement in the canal’s construction.
“The Panama Canal is doing quite well,” Trump remarked during the meeting. “I think we did a good job building it, right?”
Panama responds to Trump’s threat to retake vital waterway
The US president-elect has vowed to prevent the “US canal” from falling into “the wrong hands”
President Jose Raul Mulino has addressed the nation in response to US President-elect Donald Trump’s threat to retake control of the Panama Canal, a vital waterway that contributes billions of dollars to the Panamanian economy annually and serves as a crucial artery for global trade.
In his video address on Sunday, Mulino emphasized that the sovereignty and independence of the country are “non-negotiable” and underscored the canal’s significance as part of the “history of struggle and an irreversible conquest.”
“Every square meter of the Panama Canal and its adjacent area belongs to Panama, and it will continue to be so,” Mulino declared.
Over the weekend, Trump expressed outrage on Truth Social and during a speech at the AmericaFest conference over what he called “exorbitant” fees charged for the passage of American vessels through the canal, accusing Panama of exploiting the United States with excessive fees.
“We’re being ripped off at the Panama Canal, just like everywhere else,” despite the “extraordinary generosity that has been bestowed on Panama,” he told supporters in Arizona on Sunday.
“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 the United States of America. In full. Quickly and without question,” Trump proclaimed, warning officials in Panama to “please be guided accordingly.”
Trump also declared that he would never allow the canal to fall into “the wrong hands,” namely China’s, emphasizing that a “secure Panama Canal is crucial for US commerce and the rapid deployment of the Navy from the Atlantic all the way to the Pacific.”
Trump further emphasized his statements by sharing an image on Truth Social of an American flag over a narrow waterway with the caption, “Welcome to the United States Canal!”
Panama responded to Trump’s tweet about the Panama Canal.
Then Trump responded by renaming the canal with “welcome to the United States Canal”. pic.twitter.com/snYqWnrdM1
— Wall Street Mav (@WallStreetMav) December 22, 2024
Mulino strongly rejected these claims, stating that the canal’s rates are set publicly and transparently, considering market conditions, international competition, operating costs and maintenance needs. He highlighted that since the transfer of the canal from the United States to Panama on December 31, 1999, as per the Torrijos-Carter Treaties signed in 1977, there have been no objections or complaints regarding Panama’s control.
“These treaties also established the permanent neutrality of the canal, guaranteeing its open and secure operation for all nations,” he said, calling it the best tribute to the martyrs who fought for Panama’s sovereignty and dignity during the 1964 anti-American riots. Mulino rejected any notion that China, the European Union, or any other power has direct or indirect control over the canal.
The canal has become a source of strong national pride, managed by qualified Panamanian professionals who ensure its safe, continuous, efficient, and profitable operation, the president added. It also contributes billions of dollars to the Panamanian economy annually and serves as a crucial artery for global trade.
“Panama respects other nations and demands respect,” the president concluded, stating that he aspires to preserve good relations with the incoming US government on issues such as drug trafficking, terrorism, organized crime, and illegal migration, but the neutrality of the canal is “non-negotiable.”