Trump threatens to seize Panama Canal over rising costs

Trump discusses the Panama Canal's importance to US security and economic interests.

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President-elect Donald Trump criticised the fees charged by Panama for the use of the Panama Canal, calling them excessive and claiming that Panama would lose control of the waterway if he returns to office.

In a post on Truth Social Saturday night, Trump expressed dissatisfaction with the tariffs Panama imposes on vessels passing through the canal, a vital shipping route for global trade. “

The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S.,” Trump wrote.

He called the charges a “complete ‘rip-off’ of our Country” and vowed that it would “immediately stop” if he regains office.

The fees for passing through the Panama Canal vary depending on the size and purpose of the vessels, ranging from as low as $0.50 to as high as $300,000.

Trump further threatened that if Panama did not revise its practices, he would demand that the US seize full control of the canal. “If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without question,” he continued. “To the Officials of Panama, please be guided accordingly!”

Control of the canal was transferred from the U.S. to Panama in 1999 following a 1979 treaty signed under President Jimmy Carter. Trump criticized this decision, calling it “foolish.” “When President Jimmy Carter foolishly gave it away, for One Dollar, during his term in Office, it was solely for Panama to manage, not China, or anyone else,” he stated.

The construction of the Panama Canal began in 1904 under President Teddy Roosevelt. The waterway was built to provide a faster route for shipping goods between the Atlantic and Pacific Oceans.

At the time, it was considered one of the most critical foreign policy achievements of the US.

Trump, who emphasised the US's reliance on the canal, stressed its importance to American national security and economic interests. "The United States has a vested interest in the secure, efficient, and reliable operation of the Panama Canal, and that was always understood," he said. "We would and will NEVER let it fall into the wrong hands! It was not given for the benefit of others, but merely as a token of cooperation with us and Panama.”