PHOENIX — During a rally on Sunday, Donald Trump raised the prospect of reasserting U.S. control over the Panama Canal, an asset that the United States transferred to Panama in 1999. He criticized the high fees that shippers endure to navigate this critical transportation route, which connects the Atlantic and Pacific Oceans, calling the fees “ridiculous” and referring to the decision to relinquish control as a “foolish” mistake.
President of Panama, José Raúl Mulino, who has a pro-business agenda, firmly rejected Trump’s idea, considering it a violation of Panama’s sovereignty. Trump’s comments were made at a rally, which marked his first significant public gathering since he secured the presidency on November 5. Amidst a crowd of enthusiastic conservatives, he celebrated his electoral victory. This event contrasted sharply with the recent budget conflicts in Congress, where several GOP members openly resisted the president-elect’s directives.
At the AmericaFest event in Arizona, Trump spoke about his ambitious goals, promising that his “dream team Cabinet” would rejuvenate the economy, reinforce U.S. borders, and swiftly resolve conflicts in the Middle East and Ukraine. “I can proudly proclaim that the Golden Age of America is upon us,” he declared, indicating a revitalized national spirit compared to previous months.
Over the course of a four-day event that attracted over 20,000 supporters, Trump sought to project an image of Republican unity, despite the previous week’s chaotic developments in Washington, which included struggle between his influence from Mar-a-Lago in Florida and Congress’s efforts to avert a government shutdown as the holidays approached. Disagreement surfaced among House Republicans, who withdrew support for a bipartisan agreement after objections from Trump and business magnate Elon Musk, leading to complications on raising the nation’s debt ceiling.
In his remarks in Phoenix, Trump chose not to delve into the congressional disputes but acknowledged Musk’s increasing prominence. When questioned on whether he had ceded his presidential position to Musk, Trump firmly dismissed the notion, stating, “No, no. That’s not happening. He’s not gonna be president.”
Trump started his address expressing his intention to unite the country, implying that Democrats have become disoriented post-election and suggesting they would eventually align with Republican ideals. Among the various topics he lamented was the issue of the Panama Canal, claiming, “We’re being ripped off at the Panama Canal,” and criticizing the past decision to surrender control over it.
Historically, the United States constructed the Panama Canal in the early 1900s, facilitating maritime traffic. Washington relinquished control of the canal to Panama as part of a treaty established under President Jimmy Carter in 1977. Recently, drought conditions in Central America significantly affected the canal’s operations, leading to a reduction in the number of ships passing through and thus an increase in tolls charged to shipping companies.
Although transit through the canal has resumed normal levels as weather conditions improved, fees are still expected to increase in the coming year. President Mulino, who has similar ideological leanings as Trump, emphasized that the canal generates a substantial portion of Panama’s governmental revenue.
Trump stated that once he assumes office for his second term, there would be demands made for the canal’s return to the United States if he perceives that the principles surrounding its transfer are not honored. He confidently asserted, “I’m not going to stand for it,” addressing his warnings directly to Panama’s officials.
In a swift response following Trump’s speech, Mulino released a video asserting that every part of the canal is and will remain under Panamanian jurisdiction. He pointed out that shipping fees are determined based on thorough evaluations rather than arbitrary decisions, noting that such fees facilitate the canal’s improvements that cater to increased maritime traffic.
While Trump followed up with a social media post asserting, “We’ll see about that!” he also shared an image of an American flag planted within the canal area. Beyond the canal discussions, Trump’s presence at the annual Turning Point gathering highlighted the increasing influence of the organization and its founder, Charlie Kirk, in conservative circles, noticeably contributing to Trump’s outreach, especially among less frequent voters and demographics that have leaned more Democratic in recent years.
Trump additionally announced key new appointees for his incoming administration, naming Stephen Miran as the head of the Council of Economic Advisers and Callista Gingrich as the U.S. ambassador to Switzerland. On a separate note, Australian billionaire Anthony Pratt disclosed a donation of $1.1 million to Trump’s inaugural funds, significantly enhancing his contributions to political action committees supporting Trump.
This report has been corrected to clarify that President Mulino was elected in May, not April.
