President-elect Donald Trump accused Panama of charging high fees for using the Panama Canal and said that if Panama did not manage the canal properly, he would demand it be returned to the United States. In a post on Truth Social, Trump also warned that the canal should not fall into “the wrong hands,” specifically mentioning China.
This statement was unusual for a U.S. leader, as it suggested pressuring a sovereign country to give up territory. Trump’s comment highlighted a possible shift in U.S. diplomacy, where he has been known to use strong language and threats, even with allies.
The U.S. built and controlled the Panama Canal for many years but handed full control over to Panama in 1999. Trump criticized Panama for charging what he called “ridiculous” fees and claimed the canal was given to Panama as a gesture of cooperation. He said if Panama did not honor this, the U.S. would demand the canal be returned.
The Panama Canal is vital for global shipping, allowing vessels to travel between Asia and the U.S. East Coast without going around South America. The canal is heavily used by countries like the U.S., China, Japan, and South Korea. The Panama Canal Authority reported making record revenues of nearly $5 billion last year.
