22 December 2024

By Gram Slattery

WEST PALM BEACH, Fla. (Reuters) – President-elect Donald Trump accused Panama on Saturday of charging exorbitant fees for use of the Panama Canal and said that if Panama did not manage the canal in an acceptable manner, he would demand that the U.S. ally hand it over. it's all over.

In an evening post on Truth Social, Trump also warned that he would not let the canal fall into the “wrong hands,” and appeared to warn of potential Chinese influence on the corridor, and that China should not run the canal.

The post was an extremely rare example of an American leader saying he could push a sovereign nation to hand over territory. It also highlights the expected shift in American diplomacy under Trump, who has historically not been shy about threatening allies and using hostile rhetoric when dealing with his counterparts.

The United States largely built the canal and managed the lands surrounding the passage for decades. But the US government handed over full control of the canal to Panama in 1999 after a period of joint management.

“The tariffs imposed by Panama are ridiculous, especially considering the extraordinary generosity the United States has extended to Panama,” Trump wrote in his Truth Social post.

© Reuters. FILE PHOTO: US President-elect Donald Trump delivers a speech at Mar-a-Lago in Palm Beach, Florida, US, December 16, 2024. REUTERS/Brian Snyder/File Photo

“It was not given for the benefit of others, but only as a symbol of cooperation with us and Panama. If the moral and legal principles of this generous gesture of giving are not followed, we will demand that the Panama Canal be restored to normal.” To be returned to us in full and without any doubt.”

The Panama Embassy in Washington did not immediately respond to a request for comment.

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