Trump threatens to reclaim Panama Canal, sparking tension

US President-elect Donald Trump has hinted that his administration might attempt to regain control of the Panama Canal, describing its transfer to Panama as a “foolish” decision by the United States.

Speaking at a major rally in Phoenix, Arizona, he criticised the “ridiculous” fees charged to ships passing through the canal.

Panama’s President José Raúl Mulino swiftly rejected Trump’s comments, calling them an affront to his country’s sovereignty. “Every square metre of the canal belongs to Panama and will remain so,” Mulino declared, urging unity among Panamanians in defending their nation’s rights, reported Associated Press (AP).

The United States constructed the canal in the early 20th century but handed it over to Panama in 1999 under a treaty signed by President Jimmy Carter.

Despite a challenging year with droughts affecting canal operations, fees were raised to address costs and maintain the canal’s infrastructure. Mulino emphasised that these tariffs are set by experts based on supply and demand.

Trump, addressing conservative activists at Turning Point USA’s annual conference, pledged to tackle issues like border security and economic growth. “The Golden Age of America is upon us,” he proclaimed, while sidestepping recent Republican infighting over a government funding deal.

The rally also saw Trump dismiss rumours about his relationship with Elon Musk, who has become a prominent political figure. “They’re saying I’ve ceded the presidency to Elon Musk,” Trump said with a laugh. “No, that’s not happening. He’s not gonna be president”, reported BBC.

The event showcased the influence of ‘Turning Point USA’ in energising conservative voters, with Trump crediting the group’s efforts in securing his election victory.

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