The Republican president-elect's comment came during his first major rally since winning the White House on Nov. 5. He also basked in his return to power as a large audience of conservatives cheered along.
Addressing supporters at Turning Point USA’s AmericaFest in Arizona, Trump pledged that his “dream team Cabinet” would deliver a booming economy, seal U.S. borders and quickly settle wars in the Middle East and Ukraine.
“I can proudly proclaim that the Golden Age of America is upon us,” Trump said. “There’s a spirit that we have now that we didn’t have just a short while ago.”
Atop a list of grievances — some old, some new — was the Panama Canal.
“We’re being ripped off at the Panama Canal,” he said, bemoaning that his country ”foolishly gave it away.”
The United States built the canal in the early 1900s as it looked for ways to facilitate the transit of commercial and military vessels between its coasts. Washington relinquished control of the waterway to Panama on Dec. 31, 1999, under a treaty signed in 1977 by President Jimmy Carter.
The canal depends on reservoirs to operate its locks and was heavily affected by 2023 Central American droughts that forced it to substantially reduce the number of daily slots for crossing ships. With fewer ships using the canal each day, administrators also increased the fees that are charged all shippers for reserving a slot.
With weather returning to normal in the later months of this year, transit on the canal has normalized. But price increases are still expected for next year.
Mulino, Panama's president, has been described as a conservative populist who aligns with Trump on many issues. Panama is a strong U.S. ally and the canal is crucial for its economy, generating about one-fifth of that government’s annual revenue.
Still, Trump said, that, once his second term is underway, "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 the United States of America, in full, quickly and without question.”
“I’m not going to stand for it," Trump said. "So to the officials of Panama, please be guided accordingly.”
He did not explain how that would be possible.
Shortly after Trump's speech, Panama's president Jose Raul Mulino, released a video declaring that “every square meter of the canal belongs to Panama and will continue to belong” to his country.
Without mentioning Trump by name, Mulino addressed Trump's complaints over rising fees for ships crossing the canal, saying they are set by experts who take into account operational costs, and supply and demand factors.
“The tariffs are not set on a whim” Mulino said. He noted that Panama has expanded the canal over the years to increase ship traffic “on its own initiative,” and added that shipping fee increases help pay for improvements.
“Panamanians may 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 site to offer in response, “We'll see about that!" He also posted a picture of a U.S. flag planted in the canal zone under the phrase, “Welcome to the United States Canal!”
