Trump Threatens To Take Back The Panama Canal Over ‘Ridiculous’ Fees

President-elect Donald Trump has suggested that he will take the Panama Canal back from the country due to the “ridiculous” shipping fees.

The Panama Canal has provided a vital transportation path through the Atlantic and Pacific Oceans for decades.

On Sunday, at a Turning Point USA event in Phoenix, Trump said, “We’re being ripped off at the Panama Canal.” He lamented how the United States had “foolishly” relinquished the canal to its Central American ally and threatened to demand its return if fees were not reduced.

The canal has become critical to Panama’s economy, generating roughly one-fifth of their government’s annual revenue. José Raúl Mulino, Panama’s president elected in May, rejected Trump’s threat as an insult to the country’s power. A conservative populist, Mulino has been known to agree with Trump on many issues, but his recent remarks will likely cause a rift between the two.

In Phoenix, Trump asserted, “I can proudly proclaim that the Golden Age of America is upon us… there’s a spirit that we have now that we didn’t have just a short while ago.”

He promised, “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 the United States of America, in full, quickly and without question.”

Trump did not comment on how he planned to fulfill this promise to the public.

He added, “I’m not going to stand for it… so to the officials of Panama, please be guided accordingly.”

Without mentioning Trump by name, Mulino responded to the comments through a video proclaiming that “every square meter of the canal belongs to Panama and will continue to belong [to Panama].”

Mulino further said the canal has expanded over the years to increase ship traffic. “The tariffs are not set on a whim,” he said, but determined by experts who account for operational costs and supply and demand factors.

He asserted, “Panamanians may have different views on many issues… but when it comes to our canal and our sovereignty, we will all unite under our Panamanian flag.”

Trump took to social media to respond to Mulino, saying, “We’ll see about that!” alongside a picture of the American flag at the canal with the phrase, “Welcome to the United States Canal!”

The canal was built by the United States in the early 1900s to facilitate trade and the transit of commercial and military vessels from coast to coast. In December 1999, then-President Jimmy Carter signed a treaty that relinquished control of the canal.