• President-elect Donald Trump has threatened to reclaim U.S. control of the Panama Canal, accusing Panama of charging unfair toll fees and warning of alleged Chinese influence, despite Panama fully managing the canal.
  • Panamanian President José Raúl Mulino firmly rejected Trump’s comments, emphasizing Panama’s sovereignty and clarifying that canal fees are determined by established criteria, not arbitrarily.
  • The Panama Canal, under Panamanian control since 1999, is crucial for global trade, and Trump's threats are seen as aggressive rhetoric with no legal basis under international law.

President-elect Donald Trump on Sunday threatened to reclaim U.S. control of the Panama Canal, accusing Panama of charging unfair fees for using the vital waterway. His remarks, made during a rally in Arizona, sparked a swift and firm response from Panamanian President José Raúl Mulino, who rejected Trump’s comments as baseless and defended Panama’s sovereignty.

Accusations of Unfair Fees and Chinese Influence

Trump, addressing supporters at the conservative AmericaFest event, claimed Panama was exploiting the United States with high canal tolls. He also warned against potential Chinese influence in the canal's operations, despite the fact that China does not manage or control the canal itself. A subsidiary of Hong Kong-based CK Hutchison Holdings operates two ports at the canal’s entrances, but Panama fully administers the waterway.

Escalation of Rhetoric on Truth Social

On Saturday night, Trump posted a similar message on Truth Social, calling the canal’s fees “ridiculous” and vowing to take action. By Sunday, his rhetoric escalated as he declared that if Panama failed to treat the U.S. fairly, he would demand the canal’s immediate return to American control. These statements marked a rare instance of a U.S. leader suggesting territorial demands on a sovereign nation.

Panama’s Firm Response

In response, President Mulino released a recorded statement on Sunday, categorically rejecting Trump’s threats. He emphasized that every part of the canal belongs to Panama and will remain so. Mulino also clarified that Panama’s canal tolls are determined by established criteria and not arbitrarily. He stated firmly that Panama’s independence is “non-negotiable” and dismissed Trump’s claims of Chinese influence.

Political Backlash in Panama

Panama’s opposition politicians joined Mulino in criticizing Trump’s remarks, taking to social media to defend the nation’s ownership of the canal. The canal, a crucial conduit for 2.5% of global maritime trade, has been under Panamanian control since 1999, following a transition period agreed upon in 1977 under U.S.-Panama treaties.

The Canal’s Role in Global Commerce

The canal plays a vital role in global commerce, particularly for U.S. imports like automobiles and containerized goods from Asia, as well as exports such as liquefied natural gas. However, international law provides no recourse for Trump to reclaim the canal. His threats are seen as a sign of the aggressive diplomacy that could define his presidency.

Trump’s Pattern of Territorial Ambitions

This is not Trump’s first foray into territorial ambitions. During his first term, he floated the idea of buying Greenland from Denmark, which was swiftly rejected. Recently, he has mused about making Canada a U.S. state, though the seriousness of such remarks remains unclear. As Trump's rhetoric continues to draw international attention, his approach to foreign policy signals a sharp break from traditional norms.

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