Trump threatens to reclaim control of Panama Canal

President-elect Trump caused a stir by saying the US should take back control of the Panama Canal. He made these comments while speaking to supporters in Arizona on Sunday. Trump claimed Panama was charging too much money for ships to use the canal, which angered Panama’s President Jose Raul Mulino.

Trump warned he wouldn’t let the canal fall into the “wrong hands,” hinting at worries about China’s influence. Whilst China doesn’t actually run the canal, a company based in Hong Kong (CK Hutchison Holdings) manages two ports at both ends of the canal.

Trump first brought this up on his social media platform, Truth Social, on Saturday night. Then at a conservative event called AmericaFest the next day, he said: “Has anyone ever heard of the Panama Canal? Because we’re being ripped off at the Panama Canal like we’re being ripped off everywhere else.”

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This was unusual because it’s rare for a US leader to suggest taking territory from another country. Trump continued: “The fees being charged by Panama are ridiculous, highly unfair.” He then added: “It was given to Panama and the people of Panama, but it has provisions. You get to treat us fairly, and they haven’t treated us fairly. 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, quickly and without question.”

Panama’s President Mulino quickly defended his country in a video message. He insisted that Panama owns the canal completely and that China has no control over it. He also explained that the fees ships pay to use the canal aren’t set randomly.

“Every square metre of the Panama Canal and the surrounding area belongs to Panama and will continue belonging (to Panama),” Mulino stated on X (formerly Twitter). Other Panamanian politicians also spoke up against Trump’s comments.

Some background: The US built most of the canal and controlled the area around it for many years. In 1977, both countries signed agreements to transfer the canal to Panama’s control. This transfer was completed in 1999. The canal is very important – it handles about 14,000 ships yearly and makes up 2.5% of global sea trade. It’s especially important for US trade with Asia.