Panama’s president hit back at Trump for comments about the US takeover of the canal

US President-elect Donald Trump threatened on Sunday to restore US control of the Panama Canal, accusing Panama of charging exorbitant rates to use the Central American passage. The comments drew a sharp rebuke from Panamanian President Jose Raul Molino.

Speaking to a crowd of supporters in Arizona on Sunday, Trump also said he would not let the canal fall into the “wrong hands,” warning of potential Chinese influence over the passage.

China does not control or administer the canal, but a subsidiary of Hong Kong-based CK Hutchison Holdings has long operated two ports located at the canal’s Caribbean and Pacific entrances.

The president-elect’s comments came hours after he made a similar threat against Panama in a Truth Social post on Saturday night.

“Has anyone heard of the Panama Canal?” Trump said Sunday at AmericaFest, an annual event organized by Turning Point, an allied conservative group. “Because we’re being cheated in the Panama Canal like we’re being cheated everywhere else.”

Trump’s comments were an extremely rare example of a US leader saying he could force a sovereign state to hand over territory. It also underscores an expected shift in American diplomacy under Trump, who has historically not shied away from threatening allies and using bellicose rhetoric when dealing with counterparties.

“The fees being charged by Panama are ridiculous, extremely unfair,” Trump said.

“It was given to Panama and the people of Panama, but there are provisions. You have to treat us fairly and they didn’t treat us fairly.

“If the principles, both moral and legal, of this generous gesture of giving are not upheld, then we will demand that the Panama Canal be returned to us in full, quickly and without question.”

In a recorded message released by Panamanian leader Molino on Sunday afternoon, he said Panama’s independence was non-negotiable and that China had no influence over the administration of the canal. He also defended the crossing fees charged by Panama, saying they were not set “on a whim”.

“Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue to belong (to Panama),” Molino said in a statement posted on X, formerly Twitter.

Several other Panamanian politicians, including members of the opposition, also took to social media to criticize Trump’s remarks.

The United States largely built the canal and ruled the territory around the passage for decades. But the US and Panama signed two agreements in 1977 that paved the way for the canal to return to full Panamanian control. The US handed over control of the passage in 1999. after a period of joint management.

The waterway, which allows up to 14,000 ships to pass annually, accounts for 2.5 percent of global seaborne trade and is critical for U.S. imports of automobiles and commercial goods by container ships from Asia, as well as U.S. exports of goods, including liquefied natural gas.

It is unclear how Trump would try to regain control of the canal, and he would have no recourse under international law if he decided to play for the passage.

This is not the first time Trump has openly considered territorial expansion.

In recent weeks, he has repeatedly mused about making Canada a U.S. state, though it’s unclear how serious he is about it. During his first term, Trump expressed interest in buying Greenland, an autonomous territory of Denmark. It was publicly rejected by the Danish authorities before any talks took place.