President-elect Donald Trump has stirred international controversy by demanding that Panama reduce fees on the Panama Canal or return it to US control, accusing the Central American nation of exploiting American shipping and naval vessels with “exorbitant prices.”
Speaking to a crowd of supporters in Arizona on Sunday, Trump declared:
“The fees being charged by Panama are ridiculous, highly unfair. This complete rip-off of our country will immediately stop,” he added, referring to actions he plans to take after his inauguration next month.
How Did Panama Respond to Trump's Demands?
The remarks drew a swift response from Panama’s president, JosĂ© RaĂşl Mulino, who firmly rejected Trump’s assertions.
“Every square meter of the canal and surrounding area belongs to Panama,” Mulino stated, emphasizing that the country’s sovereignty and independence are “non-negotiable.”
What Did Trump Say at the Turning Point USA Event?
Trump commented during a speech to supporters of Turning Point USA, a conservative activist group that substantially supported his 2024 election campaign. This rare instance of a US leader hinting at reclaiming foreign territory signals how American diplomacy may shift under Trump’s leadership.
Highlighting the canal’s importance, Trump had earlier called it a “vital national asset” for the US. In a post on Saturday, he reiterated his demand for reduced shipping rates, stating:
“If shipping rates are not lowered, we will demand that the Panama Canal be returned to us, in full, quickly and without question.”
The Panama Canal, a 51-mile (82km) waterway linking the Atlantic and Pacific Oceans, is essential for global trade. Built in the early 1900s, it remained under US control until 1977, when treaties began ceding it back to Panama. By 1999, Panama assumed complete control of the canal following a period of joint governance.
Why Is the Panama Canal So Important?
The canal is a key trade route for over 14,000 vessels annually, transporting goods such as cars, natural gas, and other commodities. It also accommodates military vessels, underscoring its strategic significance.
Trump’s comments also included broader criticisms of international trade practices, targeting Canada and Mexico. He accused them of allowing drugs and immigrants into the US but took a softer tone regarding Mexican President Claudia Sheinbaum, whom he described as a “wonderful woman.”
What Did Trump Emphasize in His Rally?
Trump’s speech, delivered to thousands at Turning Point’s annual conference, marked his first major public appearance since Congress passed a government funding deal. Notably, the agreement excluded a provision to raise the US debt ceiling—a move Trump had supported.
While the president-elect avoided discussing the debt ceiling issue, he used the platform to recap his election victory and revisit central campaign themes such as immigration, crime, and foreign trade.
One particularly lighthearted moment came when Trump addressed rumors involving Elon Musk:
“You know, they’re on a new kick—all the different hoaxes. The new one is that President Trump has ceded the presidency to Elon Musk,” he quipped. “No, no, that’s not happening. He’s not gonna be president.”
How Did Conservatives React at the Rally?
Although some speakers at the conference criticized government spending and both major political parties, divisions within the Republican Party—recently exposed in Congress—were largely downplayed during the event.
Turning Point USA, known for its significant role in mobilizing voters during the election, continues to be a prominent force in shaping conservative activism and policy advocacy.
With tensions escalating over the Panama Canal and broader foreign policy challenges looming, Trump’s remarks show the potentially confrontational approach his administration may take after his inauguration on January 20.
