President-elect Donald Trump accused Panama on Saturday of charging excessive rates for using the Panama Canal and warned that if Panama didn’t manage the canal properly, he would demand the US ally hand it back to the United States.
In a post on Truth Social, Trump expressed concerns about potential Chinese influence over the canal, asserting that it should not be under China’s management. He criticized Panama’s fees, claiming they were unreasonable given the historical generosity of the US in helping Panama. Trump suggested that if Panama did not adhere to the principles of the original handover agreement, the US would reclaim full control of the canal.
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This statement marks a rare instance of a US leader suggesting that a sovereign nation might have to return territory. It also highlights a shift in US foreign policy under Trump, who is known for using confrontational rhetoric with allies.
The United States controlled the Panama Canal until 1999, when it fully handed over control to Panama after a joint administration period. The Panamanian embassy in Washington has not yet responded to Trump’s comments.