Investing.com– President-elect Donald Trump threatened to re-establish U.S. control of the Panama Canal on Sunday, accusing Panama of charging high rates to use the canal and also drawing ire from Panamanian President Jose Raul Mulino.
Trump told supporters at an event in Arizona that the U.S. was being “ripped off at the Panama Canal,” and that he was concerned over potential Chinese influence in the region.
Trump posted a picture of an American flag in a narrow water body, with the caption “Welcome to the United States Canal.”
The canal is a key marine trade route that connects the Atlantic and Pacific Oceans. It was mostly controlled by the U.S. during its construction and handed over entirely to the Panamanian government in 1999.
Panama President Mulino criticized Trump’s rhetoric in a recorded message released on X, rejecting the President-elect’s claims that the U.S. could retake control of the waterway.
Mulino- who was elected earlier in 2024 on promises to strengthen ties with the U.S., also rejected concerns over Chinese influence in the region, and defended the fees charged by the Panama Canal Authority.
China has floated the prospect of some investment in the region, while a Hong Kong-based company operates ports at the two ends of the canal. But the waterway is controlled by a government agency.
Trump’s comments further the President-elect’s America-first stance, although it was not clear why he had focused on the shipping passage. Panama has been a steady U.S. ally since the ouster of dictator Manuel Noriega in 1989, while the canal has been a major driver of the country’s economy.
