Trump threatens to retake control of Panama Canal citing unfair fee

Donald Trump threatened to retake control of the Panama Canal on Sunday, accusing Panama of unfairly charging excessive fees and drawing sharp criticism from Panamanian President Jose Raul Mulino, Reuters reported.

At a rally in Arizona, Trump said he would not allow the canal to fall into the "wrong hands," referring to concerns about potential Chinese influence, even though China does not control the canal. A subsidiary of Hong Kong-based CK Hutchison Holdings has long managed two key ports at the canal’s entrances.

In a post on Truth Social, Trump reiterated his stance: "Has anyone ever heard of the Panama Canal? Because we're being ripped off at the Panama Canal like we're being ripped off everywhere else."

Trump’s comments were a rare example of a US leader suggesting that a foreign country should surrender territory, a stance that highlights the aggressive tone he has often taken in foreign policy. 

He criticised Panama's fees as "ridiculous" and "highly unfair," adding, "It was given to Panama and the people of Panama, but it has provisions. You get to treat us fairly, and they haven't treated us fairly."

Mulino, in a recorded message, firmly rejected Trump’s comments, stating that Panama’s sovereignty over the canal was non-negotiable. "Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue belonging (to Panama)," Mulino said.

The canal, which handles 2.5% of global trade, was handed over to Panama in 1999 after decades of US administration. It remains crucial for US trade, particularly for imports from Asia. Despite Trump's provocative remarks, there is no legal path for the US to regain control of the canal under international law.