PHOENIX — Donald Trump indicated on Sunday that his future administration might seek to reclaim control of the Panama Canal, which he described as a “foolish” concession made by the United States to its Central American partner. He criticized the “ridiculous” fees that shippers face when navigating this critical transportation route that connects the Atlantic and Pacific Oceans.
Panama’s conservative president, José Raúl Mulino, who recently took office following a pro-business campaign, categorically dismissed Trump’s remarks as an infringement on his nation’s sovereignty. This exchange occurred during Trump’s first significant rally after his victory in the presidential election on November 5. Amid enthusiastic support from a sizable gathering of conservatives, Trump reveled in his political comeback, showcasing a moment of unity within the Republican Party, notwithstanding the recent budgetary disputes in Congress, where several GOP representatives opposed his directives.
At the Turning Point USA’s AmericaFest in Arizona, Trump assured attendees that his “dream team Cabinet” would foster a thriving economy, secure U.S. borders, and expedite resolutions to conflicts in the Middle East and Ukraine. “I can proudly proclaim that the Golden Age of America is upon us,” he declared, emphasizing an energizing spirit that he believes is now prevalent among his supporters.
The rally served as a culmination of a four-day event that attracted over 20,000 activists, projecting an image of Republican solidarity despite the preceding political turbulence, with Trump orchestrating events from his Florida resort, Mar-a-Lago, while Congress negotiated to dodge a government shutdown as the holiday season approached.
In the backdrop, House Republicans abandoned a bipartisan agreement after opposition from Trump and billionaire Elon Musk on social media, with budget-conscious members ignoring Trump’s call for an increase in the nation’s debt ceiling, which he argued was essential to prevent similar disputes after he assumes office on January 20. Ultimately, a consensus was reached, averting a government shutdown, but it did not resolve the contentious debt ceiling issue.
Throughout his Phoenix address, Trump refrained from mentioning the recent congressional confrontations, although he did acknowledge Musk’s growing influence. When confronted with claims that he had “ceded the presidency” to Musk, Trump firmly asserted, “No, no. That’s not happening. He’s not gonna be president.”
Opening his speech, Trump called for unity, stating his intent to bring people together, while suggesting that Democrats have “lost their confidence” following the recent elections, insisting that they will eventually align with his agenda.
A key point of frustration for Trump during his speech was the Panama Canal, which he claimed is a site of exploitation for the United States. He lamented that the U.S. “foolishly gave it away,” referencing the history of the canal which the U.S. constructed in the early 1900s to facilitate maritime transit. Control of the canal was handed over to Panama on December 31, 1999, under a treaty negotiated by President Jimmy Carter.
Currently, the functioning of the canal has been impacted by severe drought conditions in Central America in 2023, leading to a significant reduction in the number of ships that can cross each day and consequently driving up fees for utilizing the canal. Although conditions began normalizing towards the end of the year, continued price increases are anticipated in the upcoming year.
Mulino, who is broadly described as a conservative populist, aligns with Trump on several issues. However, he maintains that the canal remains a vital economic cornerstone for Panama, accounting for approximately one-fifth of the government’s annual revenue. In response to Trump’s comments regarding the canal, he stated that if the U.S. were to disregard the moral and legal tenets surrounding the treaty, Panama would not relinquish control. “I’m not going to stand for it,” Trump emphasized, urging Panamanian officials to be mindful of this stance.
Soon after Trump’s remarks, Mulino released a video where he asserted, “Every square meter of the canal belongs to Panama and will continue to belong,” addressing concerns about shipping costs determined by expert evaluations of operational expenses and demand.
He also highlighted that increases in tariffs are intended to fund enhancements made to the canal over the years, suggesting that Panamanians will unite concerning their sovereignty. Trump later took to social media to challenge Mulino’s comments, stating, “We’ll see about that!” and sharing an image of a U.S. flag planted in the canal zone with the phrase, “Welcome to the United States Canal!”
Beyond the canal discourse, Trump’s presence at the annual gathering signified the escalating significance of Turning Point USA and its founder, Charlie Kirk, in shaping the conservative movement. Trump acknowledged their grassroots initiatives as crucial to his electoral success, attributing his victory to the efforts of Turning Point’s volunteers.
During the rally, Trump also revealed a few new appointments for his incoming administration, including Stephen Miran to lead the Council of Economic Advisers and Callista Gingrich as the U.S. ambassador to Switzerland. Additionally, Australian billionaire Anthony Pratt pledged $1.1 million to Trump’s inaugural fund, contributing to an already considerable sum he provided to Trump’s political endeavors.
This narrative was amended to correct that Panama’s president Mulino was elected in May rather than April.
