Panama’s President José Raúl Mulino sharply criticized U.S. president-elect Donald Trump after his comments suggesting the U.S. might reassert control over the Panama Canal. Trump accused Panama of charging excessive passage fees and warned of potential Chinese influence, a claim Mulino categorically denied.
Speaking at a rally in Arizona on Sunday, Trump described Panama’s canal fees as “ridiculous” and “highly unfair,” adding that the canal’s administration should align with what he called the “moral and legal principles” of its handover. Trump hinted at reclaiming the canal if these principles were not met, stating, “We will demand that the Panama Canal be returned to us, in full, quickly and without question.”
In response, Mulino released a recorded statement affirming Panama’s sovereignty and defending the canal’s fee structure. “Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue belonging [to Panama],” he said. He emphasized that the fees were carefully calculated and dismissed Trump’s allegations of Chinese influence.
The Panama Canal, a critical trade route for global commerce and U.S. imports, was built largely by the U.S. and operated under its control for decades. The canal was officially handed over to Panama in 1999 following a series of treaties signed in 1977.
Trump’s remarks represent a rare instance of a U.S. leader threatening a sovereign nation’s territory, signaling a potential shift in U.S. foreign policy under his administration.
This is not the first time Trump has made controversial territorial claims. During his first term, he expressed interest in purchasing Greenland and, more recently, mused about annexing Canada, though no formal discussions took place in either instance.
Panama’s response highlights its determination to safeguard its independence and control over the canal, with opposition politicians joining President Mulino in condemning Trump’s statements as unjustified and provocative.
The Panama Canal facilitates 2.5% of global seaborne trade, making it indispensable for international commerce. Trump’s comments have sparked questions about how his administration might approach longstanding international agreements and diplomatic norms.