Panama’s president hits back at Trump’s idea to reclaim key canal

Panama’s president has responded to President-elect Trump’s idea that his new administration could try to regain control of the Panama Canal.

After Trump said Sunday that the U.S. “foolishly gave it away” and was now “getting ripped off” by the waterway, Panama’s conservative President José Raúl Mulino released a video declaring that “every square meter of the canal belongs to Panama and will continue to belong his country.

Without mentioning Trump by name, Mulino addressed Trump’s complaints about rising fees for ships crossing the canal, saying they are set by experts who take into account operating costs and supply and demand factors.

“The rates are not set on a whim,” Mulino said. He noted that Panama has expanded the canal over the years to increase shipping traffic “on its own initiative,” adding that increases in shipping fees help pay for improvements.

TRUMP FLOATS IDEA FOR US TO RECOVER PANAMA CANAL: ‘FOOLISHLY GIVING IT AWAY’

President-elect Donald Trump speaks at AmericaFest on Sunday, Dec. 22, 2024, in Phoenix. (AP Photo/Rick Scuteri)

“Panamanians can have different views on many issues,” Mulino said. “But when it comes to our canal and our sovereignty, we will all unite under our Panamanian flag.”

Trump then took to his social media to offer in response, “We’ll see about that!” He also posted a photo of an American flag planted in the Canal Zone under the phrase “Welcome to America’s Canal!”

FETTERMAN: THEY HOPE TRUMP FAILS ROOT AGAINST THE NATION

A cargo ship crosses the Agua Clara locks at the Panama Canal in Colon, Panama, September 2, 2024. (AP Photo/Matias Delacroix, File)

Trump had previously spoken to the channel in a Saturday Truth Social post where he complained at length about the fees charged to US ships passing through the great ditch. Panama Canal tolls can range from three to six figures depending on how big a vessel is and how much cargo it’s carrying, with the largest ships being charged as much as $500,000.

The Panama Canal gates open. (Danuta Hamlin)

The United States built the canal in the early 1900s when it was looking for ways to facilitate the transit of commercial and military vessels between its coasts. Washington ceded control of the waterway to Panama on December 31, 1999 under a treaty signed in 1977 by President Jimmy Carter.

CLICK HERE TO GET THE FOX NEWS APP

The canal relies on reservoirs to operate its locks and was heavily impacted by the 2023 Central American drought, which forced it to significantly reduce the number of daily slots for crossing ships. With fewer ships using the canal each day, administrators also increased the fees charged to all shippers to reserve a slot.

As the weather returns to normal in the later months of this year, transit on the canal has normalized, but price increases are still expected for next year.

Fox News’ Andrea Margolis and The Associated Press contributed to this report.