Trump Criticizes Panama Canal Tariffs, Threatens to Reclaim Control

The elected President of the United States accused Panama of charging excessive tariffs for the use of the Panama Canal and threatened that the U.S. might reclaim control of this passage between the Pacific and Atlantic Oceans unless an agreement is reached. According to Reuters, Donald Trump said on Sunday, December 23, at a rally in Arizona that he would not allow the Panama Canal to fall into 'the wrong hands' and warned about potential Chinese influence in this important passage. China does not control or manage this canal, but a subsidiary of the CK Hutchison Holdings based in Hong Kong has long managed two ports at the Caribbean and Pacific entrances of the canal. In a speech to a conservative group known as 'Turning Point,' Trump asked, 'Has anyone ever heard of the Panama Canal?' He then stated, 'Because we have been taken advantage of in the Panama Canal just like many other places.' He added, 'The tariffs that Panama receives are ridiculous and extremely unfair. This canal was given to Panama and the people of Panama, but it has conditions. You must treat us fairly, but they have not acted that way. If the ethical and legal principles of this generous act are not respected, we will request that the Panama Canal be returned to us completely, quickly, and without question.' The remarks from the elected U.S. President came just hours after he made a similar threat against Panama in a post on the social media platform 'Truth Social' on Saturday night. The Panama Embassy in Washington did not respond to requests for comment. However, several Panamanian politicians criticized Trump's remarks on social media and called on the government to defend the Panama Canal. According to Reuters, Raúl Malinowski, the President of Panama, responded to Trump's comments on Sunday evening with a post on the social media platform X, stating, 'Every square meter of the Panama Canal and surrounding areas belongs to Panama and will remain so.' Moments later, Trump replied to him, 'We will see.' The U.S. built a large portion of the Panama Canal and managed the surrounding territories for several decades. However, in 1977, the U.S. and Panama signed two treaties that paved the way for the complete transfer of control of the canal to Panama. After a period of joint management of the Panama Canal, the U.S. ultimately fully transferred control of the canal to Panama in 1999. This waterway, which allows approximately 14,000 ships to pass through annually, constitutes 2.5% of global maritime trade and is crucial for importing cars and commercial goods to the U.S. from Asia via cargo ships, as well as for exporting goods such as liquefied natural gas from the U.S. It is unclear how Trump intends to regain control of this canal. In recent weeks, Trump has also repeatedly suggested the idea of turning Canada into a state of the U.S., although it is unclear how serious he is about this. Additionally, during his first term from 2017 to 2021, Trump expressed interest in purchasing Greenland, an autonomous territory of Denmark, but faced negative reactions from Danish officials before any negotiations could begin.