Trump demands Panama Canal fee reduction

Trump demands Panama Canal fee reduction
Trump demands Panama Canal fee reduction

President-elect Donald Trump sparked international controversy with unprecedented threats to reclaim US control over the Panama Canal, citing "exorbitant" fees charged to American vessels. Speaking at a Turning Point USA conference in Arizona, Trump demanded Panama either reduce canal fees or face demands to return the strategic waterway to US control.

The comments drew an immediate response from Panamanian President José Raúl Mulino, who firmly stated that Panama's sovereignty and independence were non-negotiable, asserting that "every square metre" of the canal belongs to Panama. Trump's threats represent an unusual instance of a US leader suggesting forced territorial acquisition from a sovereign nation.

The 82-kilometer canal, which serves as a crucial maritime link between the Atlantic and Pacific oceans, handles approximately 14,000 ships annually. While the US built and administered the canal for much of the 20th century, it was gradually transferred to Panamanian control through treaties signed in 1977, with full handover completed in 1999.

Trump's concerns also extended to Chinese influence, despite China having no direct control over the canal. However, a Hong Kong-based company operates ports at both ends of the waterway.

During the same speech, Trump addressed various campaign themes including trade relations with Canada and Mexico, immigration, and crime. He also dismissed rumors about ceding the presidency to Elon Musk. The address followed his first public appearance since Congress passed a government funding deal, though he notably avoided discussing the debt ceiling issue.

The comments signal a potential dramatic shift in US foreign policy and diplomatic approach under Trump's upcoming administration, suggesting a return to more confrontational relations with traditional allies.