Trump threatens to retake control of Panama Canal unless deal reached

FLORIDA: President-elect Donald Trump threatened to reassert U.S. control over the Panama Canal, accusing Panama of charging excessive rates to use the Central American passage, which allows ships to cross between the Pacific and Atlantic oceans.

In a Saturday evening post on Truth Social, Donald Trump also warned that he would not let the canal fall into the “wrong hands,” and he seemed to warn of potential Chinese influence on the passage, writing that the canal should not be managed by China.

China does not control or administer the canal. However, a subsidiary of Hong Kong-based CK Hutchinson Holdings manages two ports located on the Caribbean and Pacific entrances to the canal, respectively.

The post was an exceedingly rare example of a U.S. leader saying he could push a sovereign country to hand over territory. It also underlines an expected shift in U.S. diplomacy under Donald Trump, who has not historically shied away from threatening allies and using bellicose rhetoric when dealing with counterparts.

“The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S.,” Donald Trump wrote in his Truth Social post.

“It was not given for the benefit of others, but merely as a token of cooperation with us and Panama. 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,” he wrote.

The Panamanian embassy in Washington did not respond to a request for comment.

The United States largely built the canal and administrated territory surrounding the passage for decades. But the United States and Panama signed a pair of accords in 1977 that paved the way for the canal’s return to full Panamanian control. The United States handed over control of the canal in 1999 after a period of joint administration.

The waterway, which allows up to 14,000 ships to cross per year, accounts for 2.5% of global seaborne trade and is critical to U.S. imports of autos and commercial goods by container ships from Asia, and for U.S exports of commodities, including liquefied natural gas.

It is not clear how Donald Trump would seek to regain control over the canal, and he would have no recourse under international law if he decided to make a play for the passage.

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

In recent weeks, Donald Trump has repeatedly mused about turning Canada into a U.S. state, though it is unclear how serious he is about the matter. During his 2017-2021 term, Trump expressed interest in buying Greenland, an autonomous territory of Denmark. He was publicly rebuffed by Danish authorities before any conversations could take place.