President-elect Donald Trump on Saturday warned that he may take back control of the Panama Canal if Panama does not stop charging the United States “exorbitant” fees.
“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 on Truth Social in a late-night Saturday post. “This complete ‘rip-off’ of our Country will immediately stop….”
Panama charges boats and vessels tariffs to pass through the waterway, though those fees vary from as low as $0.50 to as high as $300,000.
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The U.S. built the canal after signing a treaty with the newly independent state of Panama in 1903. Though the U.S. initially administered the canal, former president Jimmy Carter signed two treaties in 1977 that promised to transfer control to Panama within the next 22 years.
Trump on Saturday ripped into Carter for ceding the canal and seemed to warn that it could fall into Chinese hands.
“When President Jimmy Carter foolishly gave it away, for One Dollar, during his term in Office, it was solely for Panama to manage, not China, or anyone else,” Trump wrote. “It was likewise not given for Panama to charge the United States, its Navy, and corporations, doing business within our Country, exorbitant prices and rates of passage.”
Experts, however, said that it does not appear that provisions in the treaty would allow Trump to legally retake control of the canal, Politico reported.
Trump’s threats to Panama come after he floated the idea of turning Canada into the 51st state over disagreements about tariffs.
“No one can answer why we subsidize Canada to the tune of over $100,000,000 a year? Makes no sense!” the president-elect wrote on Truth Social last week. “Many Canadians want Canada to become the 51st State. They would save massively on taxes and military protection. I think it is a great idea. 51st State!!!”
