Trump told a rally in Phoenix that the U.S. had foolishly ceded control to Panama, meaning ships had to pay what he called a “stupid toll” to pass through the Atlantic-Pacific canal.
Panama’s conservative president, Jose Raul Mulino, who was elected in May, rejected Trump’s plan as an affront to his country’s sovereignty.
The US transferred the important waterway to Panama under the control of Panama on December 31, 1999, when the world was preparing to welcome the new millennium. The grandiose canal was built by the Americans between 1904 and 1914, after the initial French attempt had failed.
Returning the canal was one of the deals concluded in 1977 by then US President Jimmy Carter and former Panamanian President Omar Torrijos.
“If the moral and legal principles of this generous gift are not upheld, then we will demand that the Panama Canal be returned to the United States in full, quickly and without question,” Trump said.
“I’m not going to put up with that,” Trump said, adding that “so, Panamanian officials, please act accordingly.”
He did not explain how regaining control of the channel would be possible.
Shortly after Trump’s address, Mulino released a video declaring that “every square meter of the canal belongs to Panama and will continue to belong” to his country.
Without mentioning Trump by name, Mulino addressed Trump’s complaints about rising tolls for ships crossing the canal, saying they are determined by experts who take into account operating costs as well as supply and demand factors.
“Rates are not set on a whim,” Mulino said. He noted that Panama has expanded the canal over the years to increase ship traffic “on its own initiative,” and added that increased shipping fees help pay for the improvements.
“The people of Panama can have different opinions on many issues,” Mulino said. “But when it comes to our canal and our sovereignty, we will all be united under the Panamanian flag.”
Trump then responded on his social media site: “We’ll see about that!”. He also posted a picture of a US flag placed in the channel area, under the phrase: “Welcome to the United States channel!”.
The canal depends on reservoirs to power its locks and was hit hard by the 2023 drought in Central America, which caused it to significantly reduce the number of ships that can pass through the canal. As fewer ships used the canal each day, administrators also increased the fees charged to all shippers for reserving transit time.
As the weather returns to normal conditions in the last months of this year, transit on the canal has returned to normal. However, price increases are still expected next year.
Trump also told the rally attendees that his “dream team government” would provide economic growth, strengthening of the US border and a quick resolution to the wars in the Middle East and Ukraine.