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By Flynn Nicholls
US News Reporter
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What's New
President-elect Donald Trump said the U.S. could demand the return of the Panama Canal if the Central American country fails to reduce the fees it charges American ships.
Writing on Truth Social on Saturday, Trump said of the current fees: "This complete 'rip-off' of our country will immediately stop."
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Newsweek has contacted the Trump transition team via email for comment.
Why It Matters
Since winning the election, Trump has signaled a strong "America First" approach to trade and foreign policy, pushing for rebalanced deals on the U.S.'s foreign financial commitments.
He has threatened tariffs on various economic partners, suggested Canada should become the 51st state, and said the U.S. should leave more allies to fund their own defense.
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What to Know
In his post, Trump said the Panama Canal was a "vital national asset" for the U.S., calling it "crucial" for commerce and national security.
"The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S.," Trump wrote, going on to call the country's actions "very unfair and injudicious."
"If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without question."
Around 14,000 ships pass through the Panama Canal each year, according to figures compiled by Statista. The narrow route, first opened by the U.S. in 1914, allows cargo vessels to travel between the American continents rather than having to circumnavigate them, hugely reducing transit times and costs.
Control of the canal was transferred from the U.S. to the Central American country in 1999 as a result of a 1979 treaty under President Jimmy Carter, which Trump said was "foolish."
In response to a request for comment, the Panamanian Embassy in Washington, D.C., referred Newsweek to a statement by President José Raúl Mulino.
"As President, I want to express precisely that every square meter of the Panama Canal and its adjacent area belong to PANAMA, and will continue to be," Mulino wrote. "The sovereignty and independence of our country are not negotiable."
What People Are Saying
Panama Canal Authority director Ricaurte Vásquez to the Financial Times: "Continuing to raise prices indefinitely is not the way forward, and we are very careful to keep the Panama Canal as a relevant transit route for the whole world."
The Embassy of Panama to the United States on Twitter in July 2019: "The United States is our number one commercial partner, the #1 user for the canal and our greatest foreign investor, creating opportunity for both nations."
What Happens Next
When Trump takes office in January, he has signaled he will take a hard line on foreign policy, suggesting that partner countries must make better deals with the U.S. or suffer reciprocal actions.
Update 12/24/24 at 3:57 a.m. ET; This article has been updated with a statement from the president of Panama.
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