President-elect Donald Trump threatened over the weekend that the U.S. would retake control of the Panama Canal if Panama did not lower the fees it charges U.S. ships to access the waterway that connects the Atlantic and Pacific oceans.
Trump first issued the threat in two posts on Truth Social Saturday night. He then mentioned the canal again on Sunday while speaking at the conservative group Turning Point's annual AmericaFest in Arizona, implying that Panama had allowed China to take control of the waterway.
"We will never, ever let it fall into the wrong hands," Trump said.
"Trump is a tyrant threatening the sovereignty of Panama a day after the 35 year commemoration of a deadly and disproportionate U.S. invasion in which thousands of Panamanian civilians were killed."
In response, Rep. Ritchie Torres (D-N.Y.), posted on Bluesky, "Donald Trump is openly advocating for imperialism against Panama and the seizure of the Panama Canal by the United States. He doesn't seem to know that Panama is a sovereign country or doesn't seem to care."
The U.S. struck an agreement with Panama in 1904 to build the canal and take possession of the land on each side of it. However, former U.S. President Jimmy Carter negotiated a treaty with Panama in the late 1970s to return the canal to Panama by 1999.
In his initial Truth Social post, Trump wrote that "it was solely for Panama to manage, not China, or anyone else. It was likewise not given for Panama to charge the United States, its Navy, and corporations, doing business within our country, exorbitant prices and rates of passage."
In the second post, Trump concluded that the canal "was not given for the benefit of others, but merely as a token of cooperation with us and Panama. 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, and without question. To the officials of Panama, please be guided accordingly!"
Trump repeated many of the same arguments in his speech at AmericaFest.
When he first mentioned the canal, an audience member called out, "Take it back!"
Trump responded, "That's a good idea."
In reporting on Trump's remarks, Reuters noted that China does not control any part of the canal. However, a subsidiary of Hong Kong-based CK Hutchison Holdings has managed two ports on either side for years. The outlet called Trump's remarks "an exceedingly rare example of a U.S. leader saying he could push a sovereign country to hand over territory."
"The government has the duty to defend our autonomy as an independent country," Panamanian opposition deputy Grace Hernandez wrote on social media in response to Trump's remarks. "Diplomacy demands steadfastness in the face of regrettable statements."
The current leader of Panama, President José Raúl Mulino, is a pro-U.S. conservative, according to The Associated Press. The rising prices that Trump laments have less to do with any targeting of the U.S. and more to do with environmental conditions impacting all of the canal's users, though the U.S. does use it more than any other nation. As AP explained:
The canal depends on reservoirs to operate its locks. It was heavily affected by droughts in Central America in 2023 that forced it to substantially reduce the number of daily slots for crossing ships. With fewer ships using the canal each day, administrators also increased the fees that are charged all shippers for reserving a slot.
With weather returning to normal in the later months of this year, transit on the canal has normalized. But price increases are still expected for next year.
Trump's initial remarks came a day after the 35th anniversary of the U.S. invasion of Panama to oust President Manuel Noriega, which grassroots groups say killed thousands of civilians in Panama and displaced tens of thousands.
"Trump is a tyrant threatening the sovereignty of Panama a day after the 35 year commemoration of a deadly and disproportionate U.S. invasion in which thousands of Panamanian civilians were killed," Panamanian architectural designer Luis Alfaro wrote on social media. "The canal is on Panamanian land, and will always be Panamanian."
