Trump Demands Panama Canal Oversight Amid Fee Dispute, Panama Fires Back

President-elect Donald Trump has called for the United States to reclaim oversight of the Panama Canal if Panama continues what he describes as unfair treatment and exorbitant fees.

Trump criticized the tariffs Panama charges for ships to pass through the canal, calling them a “rip-off” and suggesting immediate changes are necessary to protect U.S. interests.

In a post on his Truth Social platform, Trump wrote, “The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S. This complete ‘rip-off’ of our Country will immediately stop.”

He warned that if Panama does not comply with principles he deems moral and legal, he will demand that the Panama Canal be returned to U.S. control.

The Panama Canal, a critical shipping route between the Atlantic and Pacific Oceans, is widely used by U.S. vessels.

Tariffs for its use range from $0.50 to $300,000, depending on vessel size and purpose. Control of the canal was transferred to Panama in 1999 under the terms of a treaty signed by former President Jimmy Carter in 1979—a decision Trump called a “foolish giveaway.”

“When President Jimmy Carter foolishly gave it away, for One Dollar, during his term in Office, it was solely for Panama to manage—not China, or anyone else,” Trump stated. “It was likewise not given for Panama to charge the United States, its Navy, and corporations exorbitant prices and rates of passage.”

Trump also emphasized the canal’s importance to American national security and the economy, calling for a “secure and efficient” operation. “The United States has a vested interest in the secure, efficient, and reliable operation of the Panama Canal. We would and will NEVER let it fall into the wrong hands,” he said.

In response, Panamanian President José Raúl Mulino issued a strong rebuttal, asserting that the canal belongs solely to Panama and will remain under Panamanian control. “Every square meter of the Panama Canal and its adjacent zone belongs to Panama, and will continue to do so,” Mulino said in a video statement.

He rejected Trump’s characterization of the fees as unfair, explaining that the rates are determined transparently, based on market conditions and operational costs.

“Rates are not a whim,” Mulino stated. “They are established publicly and in open hearings, taking into account market conditions, international competition, operating costs, and the maintenance and modernization needs of the interoceanic route.”

He highlighted the expansion of the canal in 2016 as evidence of Panama’s successful management, which he said has fostered economic and commercial growth worldwide.

Mulino expressed hope for a respectful relationship with the incoming Trump administration, emphasizing shared priorities such as combating illegal migration, drug trafficking, and organized crime.

However, he made it clear that Panama’s sovereignty and the interests of its people remain non-negotiable. “We Panamanians may think differently on many issues, but when it comes to our canal and our sovereignty, we all unite under a single flag, that of Panama,” he said.

As tensions over the canal’s control and fees mount, it remains uncertain whether Trump’s demands will lead to significant changes or further strain relations between the U.S. and Panama.