Trump threatens to try to regain control of the Panama Canal

President-elect Donald Trump has called on Panama to reduce tariffs on the Panama Canal or return it to US control, accusing the Central American country of imposing “exorbitant rates” on US shipping and naval vessels.

“The tariffs imposed by Panama are ridiculous and wildly unfair,” he told a crowd of supporters in Arizona on Sunday.

“This complete fraud on our country will stop immediately,” he said, referring to when he will take office next month.

His comments sparked a swift rebuke from Panama’s president, who said that “every square meter” of the canal and the surrounding area belonged to his country.

President Jose Raul Molino added that Panama’s sovereignty and independence are not negotiable.

Trump made the comments to supporters of Turning Point USA, a conservative activist group that has provided significant support to his 2024 campaign.

It was a rare example of an American leader saying he could push a country to hand over territory — though he did not say how he would do so — and a sign of how American foreign policy and diplomacy would shift once he entered the White House after his inauguration on January 20.

Trump’s comments followed a similar post the previous day in which he said the Panama Canal was a “vital national asset” for the United States.

Trump said on Sunday that if shipping rates were not reduced, “we will demand that the Panama Canal be returned to us in full, quickly, without a doubt.”

The 51-mile (82 km) Panama Canal passes through the Central American country and is the main link between the Atlantic and Pacific oceans.

Up to 14,000 ships travel through it each year, including container ships carrying cars, natural gas and other goods, and military ships.

It was built in the early twentieth century. The United States maintained control of the canal zone until 1977, when treaties gradually ceded the land to Panama. After a period of joint control, Panama gained sole control in 1999.

The United States reserved the right to use military force to defend the canal against any threat to its neutrality—a threat that now appeared to come from the United States itself.

The Neutrality Treaty guarantees fair access to all countries and non-discriminatory fees. Different shipping companies pay different amounts for passage through the canal, but this depends on the size of the ship and the cargo on board, not on the country of origin.

Canal transit costs rose over the past year due to historic drought, according to an analysis by leading shipping industry website Lloyd’s List.

About 75% of the cargo that passed through the waterway in the last fiscal year was either headed to or coming from the United States, according to the Panama Canal Authority.

However, the users of the canal are ship operators and owners, not the countries themselves.

In addition to Panama, the president-elect also targeted Canada and Mexico over what he described as unfair trade practices. He accused them of allowing drugs and immigrants into the United States, although he described Mexican President Claudia Sheinbaum as a “wonderful woman.”

Trump made his remarks before thousands at the annual Turning Point conference, one of the largest gatherings of conservative activists in the country.

Turning Point has poured massive resources into advocacy efforts in swing states with the goal of supporting Trump and other Republicans during the campaign.

It was his first speech since Congress approved the deal this week to keep the US government open, after removing several provisions including one that would have increased the country’s debt ceiling.

Trump had supported raising the debt ceiling, which restricts the amount of money the US government can borrow.

But his Sunday speech avoided the issue entirely, instead summarizing his electoral victory and touching on topics — including immigration, crime and foreign trade — that were mainstays of his campaign.

However, Elon Musk has mentioned.

“You know, they’re in like-new condition,” he said. “All different hoaxes. What’s new is that President Trump has ceded the presidency to Elon Musk.”

“No, no, that’s not happening,” he said. “He will not become president.”

Many of the speakers here at the conference criticized government spending and politicians in both parties — but the divisions within the GOP that have played out in Congress in recent days have been mostly muted.