US President-elect Donald Trump threatened on Sunday to restore US control over the Panama Canal, accusing the Central American country of imposing excessive fees on use of the waterway, which sparked a sharp response from Panama President Jose Raul Molino.
In a speech to a number of his supporters in Arizona on Sunday, Trump also said that he would not let the canal fall into the “wrong hands,” warning of possible Chinese influence on the waterway.
China does not control or operate the canal. However, a subsidiary of Hong Kong-based CK Hutchinson Holdings operates two ports located on the Caribbean and Pacific entrances to the canal.
Trump’s statements came hours after a similar threat made by the US President-elect to Panama in a post on the “Truth Social” platform on Saturday evening.
Trump said at a conference on Sunday: “Have any of you ever heard of the Panama Canal?… Because we are being deceived at the Panama Canal just as we are being deceived everywhere in the world.”
Trump’s comments were an extremely rare example of a US president saying he can pressure any sovereign country to hand over territory. These statements also confirm the expected shift in American diplomacy during the era of Trump, who has not previously hesitated to threaten allies and use aggressive rhetoric when dealing with counterparts.
Trump said: “The tariffs imposed by Panama are ridiculous and completely unfair.”
He added: “It (the canal) was offered to Panama and the people of Panama, but with conditions. You should treat us fairly, but they did not do that.”
He continued, “If the moral and legal principles of this generous gesture are not followed, we will demand that the Panama Canal be returned to us in its entirety, expeditiously and without question.”
In a recorded message released by Panama’s president on Sunday afternoon, Molino said his country’s independence is non-negotiable, and that China has no influence on the management of the canal. He also defended Panama’s toll fees, saying they were not set suddenly.
“Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue to belong to it (Panama),” Molyneux said in the statement.
Many politicians in Panama, including members of the opposition, also took to social media to criticize Trump’s statements.
The United States built much of the canal and administered the area surrounding the passage for decades. But Washington and Panama signed two agreements in 1977 that paved the way for the canal to return to full Panama control.
The US government handed over full control of the canal to Panama in 1999 after a period of joint management.
The waterway, which allows the passage of up to 14,000 ships annually, represents 2.5% of global seaborne trade and is critical for US imports of cars and commercial goods from Asia and for US exports of goods, including liquefied natural gas.
It is not yet clear how Trump will seek to regain control of the canal, and he will have no recourse under international law if he decides to go ahead with his effort to control it.
This is not the first time that Trump has considered expanding his country’s territory.
In the past few weeks, Trump has repeatedly raised the idea of turning Canada into a US state, although it is not clear how serious he is about this matter. During his first term, Trump expressed interest in purchasing Greenland, an autonomous region of Denmark. The Danish authorities have publicly rejected this.