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The Panama Canal is charging ‘exhorbitant prices and rates of passage,’ on American naval and merchant ships, incoming US President Donald Trump said last week
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He demanded that the ‘ridiculous’ fees be lowered. If not, Panama should return the canal to the US
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The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the US, said Trump
The Panama Canal is charging “exorbitant prices and rates of passage,” on US naval and merchant ships, incoming US President Donald Trump said on Sunday (US time).
He demanded that the ‘ridiculous’ fees be lowered. If not, Panama should return the canal to the US, Trump said.
In a post on his Truth Social platform, Trump said, “The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the US.”
He warned that “this complete rip-off of our country will immediately stop.”
The US built the 82-kilometer canal in 1914, but ceded it back to Panama in 1999 under a treaty signed by then president Jimmy Carter. Trump said Carter’s move was foolish.
Trump implied that the canal was in danger of falling into the wrong hands, specifically China. China is the second biggest customer of the canal after the US.
A Chinese company controls two of the five ports adjacent to the canal, one on each side.
Trump said the canal “was not given for the benefit of others, but merely as a token of cooperation with us and Panama.”
He added that 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.”
“Please be guided accordingly,” he told officials of Panama.
As the canal’s biggest customer, the US accounts for some three quarters of the cargo that passes through annually.
A prolonged drought, however, has hampered the canal’s ability to move ships between the Pacific and Atlantic oceans.
The resulting disruptions contributed to the supply-chain pressures that have boosted inflation, according to Lael Brainard, National Economic Council director.
The Panama Canal Authority said the canal contributed $2.47 billion to Panama’s treasury in 2024, the second consecutive year of decline.
The Panamanian embassy in Washington did not immediately return a request for comment.
