Washington, United States

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President-elect Donald Trump has called for the Panama Canal to be returned to the United States if Panama fails to manage it in a manner he deems acceptable. He also criticised the Central American country for allegedly imposing excessive charges on vessels using the vital waterway.

“Our Navy and Commerce have been treated in a very unfair and injudicious way. The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the US. This complete 'rip-off' of our country will immediately stop,” Trump posted on his Truth Social platform on Saturday (December 21).

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“If the moral and legal principles 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 said.

In a Saturday evening post on Truth Social, Trump expressed concerns about the canal potentially being influenced by China. “It was solely for Panama to manage, not China or anyone else. We would and will NEVER let it fall into the wrong hands!,” he wrote.

Although Trump suggested a potential Chinese role in managing the canal, China does not control or operate it. However, a subsidiary of Hong Kong-based CK Hutchison Holdings does manage two ports near the canal’s entrances on the Caribbean and Pacific sides.

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Trump described the Panama Canal as a “vital national asset” for the US, stressing its importance for both commerce and national security. His remarks marked an unusual instance of a US leader suggesting the possibility of pressuring a sovereign nation to relinquish control of its territory.

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Panamanian officials have not yet responded to Trump’s comments.

The United States largely built the canal, which opened in 1914. For decades, the US managed the surrounding territory before transferring full control of the canal to Panama in 1999 after a period of shared administration.

The canal's fees range from $0.50 to $300,000 depending on the vessel's size, making it a critical yet costly route for global trade. The United States remains the canal’s largest user, followed by China and Japan.

Trump is set to be sworn in as the 47th President of the United States on Monday, 20 January.

(With inputs from agencies)