Trump threatens to try to seize control of the Panama Canal

President-elect Donald Trump has demanded Panama reduce tariffs on the Panama Canal or return it to US control, accusing the Central American country of charging US shipping and naval vessels “exorbitant prices”.

“The fees being charged by Panama are ridiculous and extremely unfair,” he told a crowd of supporters in Arizona on Sunday.

Referring to assuming charge next month, he said, “This entire scam in our country will stop immediately.”

His comments drew an immediate rebuke from the President of Panama, who said that “every square meter” of the canal and surroundings belonged to his country.

President José Raúl Mulino said that Panama’s sovereignty and independence cannot be compromised.

Trump made the remarks to supporters of Turning Point USA, a conservative activist group that provided key support to his 2024 re-election campaign.

It was a rare example of an American leader saying he might force a country to cede territory – though he did not specify how he would do so – and a sign that his entry into the White House How might American foreign policy and diplomacy change after doing so? His inauguration on 20th January.

Trump’s comments came after a similar post a day earlier in which he said the Panama Canal was a “vital national asset” for the US.

“If shipping rates are not reduced, we will demand that the Panama Canal be returned to us completely, quickly and without questions,” Trump said Sunday.

The 51-mile (82 km) Panama Canal bisects the Central American nation and is the main link between the Atlantic and Pacific oceans.

It was built in the early 1900s and the US maintained control over the Canal Zone until 1977, when treaties gradually ceded the land back to Panama. After a period of joint control, Panama took over sole control in 1999.

14,000 ships transit the canal per year, including container ships and military ships carrying cars, natural gas and other goods.

Along with Panama, the president-elect also took aim at Canada and Mexico over unfair trade practices. He accused her of allowing drugs and immigrants into the US, although he called Mexican President Claudia Sheinbaum a “wonderful woman”.

Trump made his remarks in front of thousands of people at Turning Point’s annual conference, one of the nation’s largest gatherings of conservative activists.

Turning Point poured huge resources into get-out-the-vote efforts in swing states designed to strengthen Trump and other Republicans during the election campaign.

It was his first speech since the deal passed in Congress this week to keep the US government open removed several provisions, including raising the country’s debt ceiling.

Trump had supported raising the debt ceiling, which limits the amount of money the U.S. government can borrow.

But his speech on Sunday avoided that issue entirely, instead touting his election victory and hitting on topics including immigration, crime and foreign trade that were mainstays of his campaign.

However, he mentioned Elon Musk.

“You know, they’re on a new move,” he said. “All different rumors. The new thing is that President Trump has handed the presidency to Elon Musk.”

“No, no, that’s not happening,” he said. “He will not become president.”

Many speakers at the convention were critical of government spending and politicians from both parties — though divisions within the Republican Party that have come to the fore in Congress in recent days were mostly muted.