President-elect Donald Trump has called for Panama to lower its fees on the Panama Canal or risk having it returned to US control. He criticized Panama for imposing what he deemed “exorbitant prices” on American shipping and naval vessels during a rally in Arizona.
Trump expressed his frustrations before a enthusiastic audience, stating, “The fees being charged by Panama are ridiculous, highly unfair.” He pledged that upon taking office, “This complete rip-off of our country will immediately stop.”
The comments prompted immediate backlash from Panama’s leader, who asserted that “every square meter” of the canal belongs to his country and emphasized that Panama’s sovereignty is non-negotiable.
In a notable shift in US foreign policy rhetoric, Trump mentioned that if shipping fees are not reduced, the US would “demand that the Panama Canal be returned to us, in full, quickly and without question.” He previously referred to the canal as a “vital national asset” for the United States.
The Panama Canal, stretching 51 miles across the Central American nation, is a crucial passageway for approximately 14,000 ships each year, serving as a major link between the Atlantic and Pacific Oceans.
Although historical agreements allowed Panama to take control in 1999 after a period of joint administration, the US retained defensive rights to ensure the canal’s neutrality. However, tensions have arisen as accusations of unfair tolls and shipping costs are considered.
Recent data indicates that shipping rates have increased due to a historic drought impacting canal operations, a fact noted by industry analysts.
Trump Addresses Trade and Immigration Issues
In addition to his criticism of Panama, Trump also targeted Canada and Mexico for what he termed unfair trade practices, linking these nations to the influx of drugs and immigration into the US, while commending Mexican President Claudia Sheinbaum.
His speech marked a significant moment for Trump as he addressed the audience at the Turning Point USA annual conference, one of the largest gatherings of conservative activists. The group played a key role in mobilizing voter turnout during the recent elections.
During his address, Trump reiterated his campaign themes, focusing on immigration, crime, and trade, and made a brief mention of the recent Congressional decision to keep the government funded, avoiding the contentious issue of the national debt ceiling, which he had previously supported.
Trump also dismissed rumors regarding Elon Musk’s influence in Washington, asserting that “he’s not gonna be president,” shutting down speculation of any transition of power. Although critiques of government spending were voiced by various speakers, the internal divides within the Republican Party were largely downplayed at the event.