Donald Trump has suggested that he might attempt to regain control of the Panama Canal, which was handed over to Panama in 1999. Global News
Donald Trump recently suggested that, under his leadership, the United States could attempt to regain control of the Panama Canal, a strategic waterway that was handed over to Panama in 1999. Trump criticized the U.S. for “foolishly” giving up control of the canal and expressed frustration with the high fees charged to ships passing through it. He called the current charges “ridiculous” and hinted that, if his principles were not respected, the U.S. would demand the return of the canal.
These comments were made during Trump’s appearance at Turning Point USA's AmericaFest rally in Arizona, where he spoke to a large crowd of conservatives. The event marked his first major rally since winning the White House in November. The speech also touched on Trump’s vision for the future, promising a booming economy, stronger borders, and swift resolutions to ongoing conflicts in the Middle East and Ukraine.
In his speech, Trump declared that a “Golden Age of America” was upon the nation, drawing cheers from the audience. He also highlighted his intention to unite the country, despite political divides, and suggested that Democrats would eventually align with his policies. His comments about the Panama Canal, however, drew a quick response from Panama’s president, José Raúl Mulino.
Mulino, elected in April on a pro-business platform, strongly rejected Trump’s remarks, calling them an affront to Panama’s sovereignty. He emphasized that the Panama Canal belonged entirely to Panama and would remain under the country’s control. In a video statement, Mulino explained that the canal’s fees were set by experts, reflecting operational costs and supply-demand factors. He also noted that Panama had made substantial investments to expand the canal in recent years to accommodate more ships.
Trump’s comments about the canal were part of a broader grievance against rising shipping fees, which had been increased following a drought in Central America in 2023 that impacted the canal’s operations. Though the weather had returned to normal by late 2023, the increased fees were expected to continue into the following year.
The Panama Canal holds immense importance for Panama’s economy, as it generates about 20% of the country’s annual revenue. While Trump’s remarks have sparked controversy, they underscore the longstanding significance of the canal as both a vital global shipping route and a symbol of U.S.-Panama relations.
Following Trump’s speech, Mulino reaffirmed Panama’s right to manage the canal, reiterating that the canal's sovereignty would never be up for debate. Despite the disagreement, both Trump and Mulino share conservative values, making the dispute over the canal particularly notable.
In addition to his comments on the Panama Canal, Trump’s speech also celebrated the influence of Turning Point USA, a conservative group that has played a significant role in mobilizing support for Trump. The group’s efforts were credited with helping Trump reach key voting groups, including younger voters and Latino men, who have traditionally leaned Democratic.
As Trump continues to shape his vision for the future, including selecting members for his Cabinet and securing donations for his inauguration fund, the controversy over the Panama Canal is just one of many issues that will define his administration moving forward.
