President-elect Donald Trump dedicated a significant portion of his Sunday reflecting on the possibility of the United States reclaiming control over the Panama Canal.
He even engaged in a dispute with the president of Panama, asserting “We will see!” and referring to it as the “United States Canal” after the Central American leader maintained that he would oppose Trump’s requests to relinquish authority over this vital waterway, essential for global commerce.
Trump’s primary concern regarding the management of the canal appears to be what he described as “excessive” charges for American vessels using the route.
“Has anyone ever heard of the Panama Canal?” Trump posed to an audience of supporters at a Turning Point USA event in Arizona. “Because we’re getting taken advantage of at the Panama Canal just like we are in many other places.”
The president-elect accused Panama of imposing “exorbitant fees” on Americans for ships transiting the critical trade route, and he claimed that China was gaining influence in this area.
“The United States is the primary user of the Panama Canal, with more than 72% of transit traffic going to or from U.S. ports,” Trump stated. “Think about that—it’s ours, we constructed it, and yet they managed to give it away.”
Completed in 1914, the Panama Canal was under U.S. control for several decades following its inauguration. The territory was handed back to Panama after former President Jimmy Carter ratified two treaties with the country in 1977, culminating in the return of control in 1999.
On Sunday, Trump suggested that Panama was not fulfilling its obligations in this arrangement. “If the moral and legal principles of this generous act of transferring are not adhered to, we will insist that the Panama Canal is returned to the United States of America fully, promptly, and without any conditions.”
Trump criticized Carter’s choice to hand over the Canal Zone and insinuated that foreign adversaries were seeking to dominate this critical maritime passage. “When President Jimmy Carter carelessly gifted it away—for just $1—during his presidency, it was meant solely for Panama’s management, not for China or any other nation, and now you can see the situation evolving. China!”
Currently, the Panama Canal is overseen by the Panama Canal Authority, a governmental body of Panama. While China does not directly control the canal, a Hong Kong-based firm, CK Hutchison Holdings, operates two ports at its entrances, according to Reuters.
Responding to Trump’s remarks, Panamanian President José Raúl Mulino condemned his statements in a video released on X. “I want to emphatically declare that every inch of the Panama Canal and its adjacent zones belong to Panama and will continue to do so,” Mulino stated, further adding that “the sovereignty and independence of our nation are not up for negotiation.”
Mulino also dismissed Trump’s claims that any country besides Panama is managing the canal and defended the tariffs imposed for canal passage.
In retaliation, Trump once again utilized his Truth Social platform to ridicule the Panamanian president, writing “we’ll see about that!” In a follow-up post, the president-elect shared an image of a large American flag positioned at the heart of a shipping route, dubbing it the “United States Canal.”
This is not the first instance where Trump has tossed around the notion of extending U.S. territory or acquiring lands abroad. In 2019, the Wall Street Journal first reported Trump’s interest in purchasing Greenland, an autonomous Danish territory in the North Atlantic.
Since his reelection in November, Trump has also frequently joked about the idea of making Canada the “51st state,” even reportedly sharing this jest with Canadian Prime Minister Justin Trudeau.
The Trump transition team did not promptly respond to a request for comments from the Daily Beast.
