Trump Calls for Panama Canal Fee Reduction, Threatens U.S. Reclamation
In a bold move that has already drawn international attention, President-elect Donald Trump has called for significant reductions in the fees imposed on American shipping and naval vessels by the Panama Canal. Speaking at a Turning Point USA event in Arizona, Trump declared that if Panama does not lower its “exorbitant” charges, he would demand the canal—a critical trade and military route—be returned to U.S. control.
Trump’s statements have sparked a strong reaction from Panama’s leadership. President José Raúl Mulino firmly responded that the canal and its surrounding land are integral to Panama’s sovereignty, which is “non-negotiable.” Mulino’s remarks underscored Panama’s unwavering stance on its independence, especially regarding a global asset central to its economy.
The Panama Canal, a 51-mile engineering marvel connecting the Atlantic and Pacific oceans, is essential to international trade. Since its completion in the early 1900s, it has facilitated the passage of up to 14,000 ships annually, carrying goods ranging from vehicles to natural gas. Although the canal was originally under U.S. control, treaties signed in 1977 gradually transferred ownership to Panama, culminating in sole control in 1999.
Trump’s rhetoric on the canal aligns with his broader narrative of protecting American interests. He labeled Panama’s current fee structure as a “complete rip-off,” vowing to address the issue swiftly upon taking office on January 20. While he did not detail how he would pursue such a demand, his comments mark a rare instance of a U.S. leader suggesting a potential territorial reclamation.
This speech, delivered at one of the nation’s largest gatherings of conservative activists, also touched on trade relations with Canada and Mexico. Trump criticized both nations for what he views as unfair practices, including the facilitation of illegal immigration and drug trafficking. However, he struck a more conciliatory tone regarding Mexican President Claudia Sheinbaum, calling her a “wonderful woman.”
The Turning Point USA event highlighted familiar themes from Trump’s recent election campaign, such as immigration, crime, and foreign trade. Notably absent from his speech was any mention of the contentious government funding bill recently passed by Congress, which avoided raising the country’s debt ceiling—a measure Trump had supported. Instead, the president-elect used the opportunity to rally his supporters and reinforce his vision for the country’s future.
Amid the lively atmosphere of the event, Trump dismissed rumors circulating online about his relationship with tech mogul Elon Musk. Jokingly addressing claims that he had ceded the presidency to Musk, Trump firmly stated, “That’s not happening.”
As Trump prepares to assume office, his assertive stance on the Panama Canal and trade relations signals a potential shift in American foreign policy. How these issues unfold will likely shape the early days of his presidency, setting the tone for his administration’s approach to international diplomacy.
