Donald Trump Criticizes Panama Canal Fees, Suggests US Takeover

President-elect Donald Trump suggested Sunday that his administration might try to take back control of the Panama Canal, after slamming the fees that the ships need to pay to use the canal.

Trump on Sunday criticized the United States for giving up the canal, which connected the Atlantic and Pacific Oceans and was an important route for global trade, to Panama.

Meanwhile, Panama's President José Raúl Mulino dismissed Trump's idea. Mulino, who supported business-friendly policies and was elected in May, said it was an insult to Panama's independence and sovereignty.

During his first big rally at Turning Point USA's AmericaFest in Arizona since winning the presidency on Nov. 5, Trump said, "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," AP News reported.

"We're being ripped off at the Panama Canal. 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 promised that his "dream team Cabinet" would boost the economy, secure U.S. borders, and resolve conflicts in the Middle East and Ukraine quickly. He celebrated his return to power while a large crowd of conservatives cheered for him.

The United States built the Panama Canal in the early 1900s to make it easier for commercial and military ships to travel between its coasts. On Dec. 31, 1999, the U.S. handed control of the canal to Panama under a treaty signed in 1977 by President Jimmy Carter.

The canal relies on reservoirs to run its locks, but Central American droughts in 2023 immensely reduced water levels. This led to fewer daily crossings and higher fees for ships reserving a slot.

Without naming Trump directly, President Mulino responded to complaints about rising fees. He explained that the fees were determined by experts based on operational costs and supply-and-demand factors.

"The tariffs are not set on a whim," Mulino said. "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."

Aside from this, Trump announced new appointments for his administration Sunday.

Former Treasury Department official Stephen Miran will head the Council of Economic Advisers, providing economic advice to the president. Callista Gingrich, previously U.S. ambassador to the Holy See, will serve as ambassador to Switzerland. She is the wife of former House Speaker Newt Gingrich.