US President-elect Donald Trump sparked controversy on Sunday when he threatened to reclaim US control over the Panama Canal, accusing Panama of charging “exorbitant prices” to use the Central American passage.
“The fees being charged by Panama are ridiculous and highly unfair,” Trump told a crowd of supporters in Arizona, accusing Panama of “ripping off” US shipping and naval vessels that rely on the canal.
Panama’s President José Raúl Mulino swiftly responded, asserting that the canal and its surrounding areas are the sovereign property of Panama.
“Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue belonging to Panama,” Mulino said in a statement on X, underpinning that the country’s sovereignty is non-negotiable.
Trump’s remarks are a rare instance of a US leader publicly suggesting a push to reclaim foreign territory. The US originally constructed and controlled the canal before transferring full ownership to Panama in 1999 after a period of joint administration.
“It was given to Panama and the people of Panama, but it has provisions,” Trump said, referring to the 1977 Panama Canal Treaty.
“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,” he added. Trump did not say how such a demand would be enforced.