Getty ImagesPresident-elect Donald Trump has called on Panama to reduce tariffs on the Panama Canal or return it to US control, accusing the Central American country of imposing “exorbitant rates” on US shipping and naval vessels.
“The tariffs imposed by Panama are ridiculous and wildly unfair,” he told a crowd of supporters in Arizona on Sunday.
“This complete fraud on our country will stop immediately,” he said, referring to when he will take office next month.
His comments sparked a swift rebuke from Panama's president, who said that “every square meter” of the canal and the surrounding area belonged to his country.
President Jose Raul Molino added that Panama's sovereignty and independence are not negotiable.
Trump made the comments to supporters of Turning Point USA, a conservative activist group that has provided significant support to his 2024 campaign.
It was a rare example of an American leader saying he could push a country to hand over territory — though he did not say how he would do so — and a sign of how American foreign policy and diplomacy would shift once he entered the White House after his inauguration on January 20.
Trump's comments followed a similar post the previous day in which he said the Panama Canal was a “vital national asset” for the United States.
Trump said on Sunday that if shipping rates were not reduced, “we will demand that the Panama Canal be returned to us in full, quickly, and without a doubt.”
The 51-mile (82 km) Panama Canal passes through the Central American country and is the main link between the Atlantic and Pacific Oceans.
Built in the early 1900s, the United States maintained control of the canal zone until 1977, when treaties gradually ceded the land to Panama. After a period of joint control, Panama gained sole control in 1999.
Up to 14,000 ships pass through the canal annually, including container ships carrying cars, natural gas and other goods, and military ships.
Along with Panama, the president-elect has targeted Canada and Mexico for what he described as unfair trade practices. He accused them of allowing drugs and migrants into the United States, although he described Mexican President Claudia Sheinbaum as a “wonderful woman.”
Trump hits the usual topics
Trump made his remarks before thousands at the annual Turning Point conference, one of the largest gatherings of conservative activists in the country.
Turning Point has poured massive resources into advocacy efforts in swing states with the goal of supporting Trump and other Republicans during the campaign.
It was his first speech since Congress approved the deal this week to keep the US government open, after removing several provisions including one that would have increased the country's debt ceiling.
Trump had supported raising the debt ceiling, which restricts the amount of money the US government can borrow.
But his Sunday speech avoided the issue entirely, instead summarizing his electoral victory and touching on topics — including immigration, crime and foreign trade — that were mainstays of his campaign.
However, Elon Musk has mentioned.
“You know, they're in like-new condition,” he said. “All different hoaxes. What's new is that President Trump has ceded the presidency to Elon Musk.”
“No, no, that's not happening,” he said. “He will not become president.”
Many of the speakers here at the conference criticized government spending and politicians in both parties — but the divisions within the GOP that have played out in Congress in recent days have been mostly muted.
