Trump Demands Panama Canal Return, Criticises Panama's Management and Fees

President-elect Donald Trump said he wants the U.S. to regain control of the Panama Canal, calling it a "vital national asset."

He criticised Panama's management and blamed former President Jimmy Carter for giving up control of the canal nearly 50 years ago. Trump claimed the U.S. is being unfairly charged high fees to use the canal.

Trump warned that if Panama doesn’t follow the original agreement, he would demand the canal’s return during his second term. He told Panama’s officials to "be guided accordingly."

Panama's president, José Raúl Mulino, rejected Trump’s demand, insisting the canal belongs to Panama. He explained that the canal’s fees are based on costs and demand, not arbitrary decisions. Mulino also emphasized Panama’s pride in its sovereignty over the canal.

Trump responded by posting on social media, saying, “We’ll see about that!” along with a picture of the U.S. flag planted in the canal zone.

The U.S. built the canal in the early 1900s and gave control to Panama in 1999 under an agreement with President Carter. The canal contributes 20% of Panama’s government revenue.

In 2023, droughts disrupted the canal’s operations, leading to higher fees. While normal operations have resumed, fees are expected to rise again next year.