WEST PALM BEACH: President-elect Donald Trump on Saturday accused Panama of overcharging for the use of the Panama Canal, saying he would ask the US ally if Panama did not manage the canal in an acceptable manner. They will demand his handover.
In an evening post on Truth Social, Trump also warned that he would not let the canal fall into the “wrong hands,” and appeared to warn of potential Chinese influence over the passage, writing are that the management of the canal should not be under the management of China.
The post was an extremely rare example of a US leader pressuring a sovereign country to cede territory.
It also marks an expected shift in U.S. diplomacy under Trump, who has historically not shied away from threatening allies and using bellicose rhetoric when dealing with adversaries.
The United States built a large-scale canal and managed the area around the passage for decades. But the US government handed over full control of the canal to Panama in 1999 after a period of joint administration.
“The fees charged by Panama are ridiculous, especially given the extraordinary generosity the United States has given to Panama,” Trump wrote in his Truth Social post.
“It was not given for the benefit of others, but merely as a token of our cooperation with Panama. If both the ethical and legal principles of this grand act of giving are not followed, we will will demand that the Panama Canal be returned to us in full and without question.”
The Panamanian embassy in Washington did not immediately respond to a request for comment.
Although he won’t officially take office until next month, Trump is nonetheless increasing his political influence in the waning days of President Joe Biden’s administration.
The real estate mogul boasted on the campaign trail that as a businessman, he is uniquely positioned to fight for American business interests.
An estimated five percent of global maritime traffic passes through the Panama Canal, which allows ships traveling between Asia and the US East Coast to avoid the long, dangerous passage around the southern tip of South America.
The main users of passage are the United States, China, Japan and South Korea.
The Panama Canal Authority reported in October that the waterway brought in record revenues of nearly $5 billion last fiscal year.