US President Donald Trump said in his inaugural address on Monday (Jan 20) that he will take “back the Panama Canal”, reiterating a promise that he has remained vocal about over the past months. The 47th US president further added that America can’t let China get control of the crucial waterway.
"We didn't give it to China, we gave it to Panama. And we're taking it back," he declared at the Capitol Rotunda.
BREAKING: President Donald Trump declares the U.S. is "taking back" the Panama Canal from Chinese control pic.twitter.com/lqrKSgXzSK
— Eric Daugherty (@EricLDaugh) January 20, 2025
Trump had earlier refused to rule out the use of military force against Panama. He claimed that American ships were being charged for passage through the canal.
“American ships are being severely overcharged and not treated fairly in any way, shape or form, and that includes the United States Navy, and above all, China is operating the Panama Canal,” the US president said.
However, Trump didn’t provide any detail or timeline as to when his plan would be set in motion.
"The purpose of our deal and the spirit of our treaty have been totally violated," Trump declared during the address, referencing the 1977 Panama Canal Treaties, which transferred the canal's control to Panama in 1999.
Panama president reacts
Panama President José Raúl Mulino was quick to criticise Trump's statements, vowing to keep the canal under "Panamanian control with respect to its permanent neutrality."
"The Canal was not a concession from anyone. It was the result of generational struggles that culminated in 1999, as a result of the Torrijos-Carter treaty, and from then to date, for 25 years, uninterruptedly, we have managed and expanded it responsibly to serve the world and its trade, including the United States. We will exercise the right that protects us, the legal basis of the Treaty, the dignity that distinguishes us and the strength that International Law gives us as the ideal way to manage relations between countries and, above all, between allied and friendly countries, as demonstrated history and our actions regarding the United States," he added.
Significance of Panama Canal
The 51-mile-long canal was built by the US in the early 20th century, and handed over to Panama on December 31, 1999, under a treaty signed by then-President Jimmy Carter in 1977. The route is vital for American trade, with more than 70 per cent of the canal’s traffic going to or coming from American ports. The route allows ships to ditch the longer and costlier trip around Cape Horn at the tip of South America.
Earlier, President José Raúl Mulino also declared that the canal would remain in Panamanian hands.
(With inputs from agencies)