Donald Trump suggested on Sunday that his new administration could try to reclaim control of the Panama Canal, which the US “foolishly” ceded to its Central American ally, claiming that shippers are charged “ridiculous” fees to pass through the vital transportation channel that connects the Atlantic and Pacific Oceans.
Panama’s conservative president, José Raúl Mulino, who was elected in May on a pro-business platform, dismissed the idea as an assault to his country’s sovereignty.
The Republican president-elect made the comment during his first major rally since winning the presidency on November 5. He also took pleasure in his return to power, as a big crowd of conservatives applauded him. It was a show of party unity that contrasted with the just finished budget fight on Capitol Hill, in which several Republican members openly disobeyed their leader’s requests.
Addressing supporters at Turning Point USA’s AmericaFest in Arizona, Trump promised that his “dream team Cabinet” would bring a thriving economy, seal US borders, and quickly resolve Middle Eastern and Ukrainian conflicts.
“I can proudly proclaim that the Golden Age of America is upon us,” Trump told reporters. “There’s a spirit that we have now that we didn’t have just a short while ago.”
His appearance capped a four-day pep rally that drew more than 20,000 activists and projected an image of Republican unity despite the previous week’s turbulence in Washington, with Trump pulling strings from his Mar-a-Lago resort in Florida as Congress worked to avoid a government shutdown before the holidays.
House Republicans derailed a bipartisan agreement after Trump and his billionaire ally, Elon Musk, announced their objections on social media. Budget hawks rejected Trump’s demand that they lift the nation’s debt ceiling, which would have avoided additional rounds of the same fight once he takes office on January 20, with Republicans having a slim majority in the House and Senate. The final deal did not address the issue, therefore there was no shutdown.
Trump made no mention of the congressional controversy during his address in Phoenix, but he did mention Musk’s expanding prominence. To claims that “President Trump has given the presidency to Elon,” Trump responded, “No, no. That is not occurring.”
“He’s not gonna be president,” Trump stated.
The president-elect began his remarks by declaring, “We want to try to bring everyone together.” We’re going to try. We’ll definitely give it a go.” He then said that Democrats have “lost their confidence” and are “befuddled” as a result of the election, but that they will eventually “come over to our side because we want them.”
The Panama Canal ranked first on a list of issues, some old and some fresh.
“We’re being ripped off at the Panama Canal,” he remarked, lamenting how his country “foolishly gave it away.”
The canal was developed by the United States in the early 1900s as a means of facilitating commercial and military vessel transportation between its ports. On December 31, 1999, Washington surrendered ownership of the waterway to Panama under a 1977 accord signed by President Jimmy Carter.
The canal relies on reservoirs to operate its locks, and the 2023 Central American droughts led it to significantly restrict the amount of daily slots for crossing ships. With fewer ships utilizing the canal each day, officials increased the costs charged to all shippers for booking a slot.
With the weather returning to normal in the latter months of this year, canal traffic has stabilized. However, price rises are still projected for next year.
Panama’s president, Mulino, has been labeled as a conservative populist who agrees with Trump on many topics. Panama is a major US ally, and the canal is critical to its economy, providing around one-fifth of the government’s annual earnings.
However, Trump stated that once his second term begins, “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 declared. “So to the officials of Panama, please be guided accordingly.”
He didn’t explain how that was feasible.
Mulino posted a video shortly after Trump’s speech, claiming that “every square meter of the canal belongs to Panama and will continue to belong” to his country.
Mulino answered Trump’s complaints about increased canal crossing fees without naming him, saying they are established by professionals who consider operational costs as well as supply and demand.
“The tariffs are not set on a whim,” Mulino explained. He stated that Panama has enlarged the canal over the years to enhance ship traffic “on its own initiative,” and that shipping rate hikes help fund renovations.
“Panamanians may have different views on many issues” according to Mulino. “But when it comes to our canal, and our sovereignty, we will all unite under our Panamanian flag.”
Trump immediately rushed to social media to respond, saying, “We’ll see about that!” He also shared a photo of a US flag planted in the canal zone, with the caption, “Welcome to the United States Canal!”
Aside from the canal, Trump’s participation at Turning Point’s annual event confirmed the organization’s and its founder, Charlie Kirk’s, growing clout in the conservative movement. Kirk’s organization hired thousands of field organizers across presidential battlegrounds, assisting Trump in making significant gains among infrequent voters and other demographic categories that had shifted more Democratic in recent decades, such as younger voters, Black males, and Latino men.
“You had Turning Point’s grassroots armies,” Trump explained. “It’s not my victory, it’s your victory.”
On Sunday, Trump named numerous additional members of his upcoming administration, most notably:
-Stephen Miran, who served for the Treasury Department during Trump’s first term, will oversee the Council of Economic Advisers, an executive branch institution tasked with giving objective economic counsel to the president.
—Callista Gingrich will be the US ambassador to Switzerland. Gingrich served as the United States’ ambassador to the Holy See during Trump’s first term. She’s married to former House Speaker Newt Gingrich.
Separately, Australian billionaire Anthony Pratt announced that he would donate $1.1 million to Trump’s inaugural fund, in addition to the $14 million he said he had already given to the Make America Great Again Inc. super political action committee, making him one of the president-elect’s top donors.
Pratt is the chairman of Pratt Industries, which converts recycled paper and boxes into fresh cardboard.