Trump threatens to retake control of Panama Canal unless deal reached

Trump's call to reclaim Panama Canal sparks controversy, raising concerns over U.S. diplomacy, China influence, and international law amid criticism of Panama's canal fees.

President-elect Donald Trump threatened to reassert U.S. control over the Panama Canal, accusing Panama of charging excessive rates to use the Central American passage, which allows ships to cross between the Pacific and Atlantic oceans.

In a Saturday evening post on Truth Social, Trump also warned that he would not let the canal fall into the "wrong hands," and he seemed to warn of potential Chinese influence on the passage, writing that the canal should not be managed by China.

China does not control or administer the canal. However, a subsidiary of Hong Kong-based CK Hutchinson Holdings manages two ports located on the Caribbean and Pacific entrances to the canal, respectively.

The post was an exceedingly rare example of a U.S. leader saying he could push a sovereign country to hand over territory. It also underlines an expected shift in U.S. diplomacy under Trump, who has not historically shied away from threatening allies and using bellicose rhetoric when dealing with counterparts.

"The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S.," Trump wrote in his Truth Social post.

"It was not given for the benefit of others, but merely as a token of cooperation with us and Panama. 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 us, in full, and without question," he wrote.

The Panamanian embassy in Washington did not respond to a request for comment.

The waterway, which allows up to 14,000 ships to cross per year, accounts for 2.5% of global seaborne trade and is critical to U.S. imports of autos and commercial goods by container ships from Asia, and for U.S exports of commodities, including liquefied natural gas.

It is not clear how Trump would seek to regain control over the canal, and he would have no recourse under international law if he decided to make a play for the passage.

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