President-elect Donald Trump called on Panama to reduce tolls on the Panama Canal or return it to U.S. control, accusing the Central American country of charging “exorbitant prices” to American ships and naval vessels.
“The fees imposed by Panama are ridiculous and highly unfair,” he told a crowd of supporters in Arizona on Sunday.
“This complete rip-off of our country will stop immediately,” he said, referring to his inauguration next month.
His comments prompted a swift rebuke from Panama’s president, who said “every square meter” of the canal and surrounding areas belonged to his country.
President José Raúl Mulino added that Panama’s sovereignty and independence were non-negotiable.
Trump directed these comments at supporters of Turning Point USA, a conservative activist group that provided significant support to his 2024 campaign.
It was a rare example of a U.S. leader saying he could pressure a country to give up territory – although he did not explain how he would do that – and a sign of how American foreign policy and diplomacy could change. as soon as he moves into the White House his inauguration on January 20th.
Trump’s comments followed a similar post a day earlier in which he said the Panama Canal was a “vital national asset” for the US.
If shipping fees are not reduced, Trump said Sunday, “we will demand that the Panama Canal be returned to us in full, quickly and without questions.”
The 51 mile (82 km) long Panama Canal crosses the Central American nation and is the main connection between the Atlantic and Pacific.
It was built in the early 1900s and the US retained control of the Canal Zone until 1977, when the land was gradually returned to Panama through treaties. After a period of shared control, Panama assumed sole control in 1999.
Up to 14,000 ships cross the canal each year, including container ships carrying cars, natural gas and other goods, as well as military ships.
In addition to Panama, the president-elect also targeted Canada and Mexico for alleged unfair trade practices. He accused them of allowing drugs and immigrants into the U.S., even as he called Mexican President Claudia Sheinbaum a “wonderful woman.”
Trump hits on the usual themes
Trump made his remarks before thousands of people at the Turning Point annual conference, one of the largest gatherings of conservative activists in the country.
Turning Point invested enormous resources in efforts to boost voter turnout in swing states to boost Trump and other Republicans in the election campaign.
It was his first speech since Congress passed a deal this week that would keep the U.S. government open after eliminating several provisions, including one that would have raised the country’s debt ceiling.
Trump had spoken out in favor of raising the debt ceiling, which limits the US government’s borrowing.
But in his speech on Sunday, he avoided that topic entirely, instead recapping his election victory and addressing issues – including immigration, crime and foreign trade – that were the mainstays of his campaign.
However, he mentioned Elon Musk.
“You know, they’ve got a new kick,” he said. “All the different hoaxes. The new one is that President Trump has ceded the presidency to Elon Musk.”
“No, no, that’s not happening,” he said. “He won’t be president.”
Several speakers here at the conference were critical of government spending and of politicians from both parties – but the divisions within the Republican Party that have emerged in Congress in recent days have been largely muted.