On Sunday, U.S. President-elect Donald Trump explain His new administration will work to regain control of the Panama Canal.

His comments were condemned by Panamanian President José Raul Mulino.

Here’s more on Trump’s comments and the importance of the Panama Canal to the United States:

What did Trump say?

Trump mentioned the Panama Canal at America Day, an annual event organized by the conservative group Turning Point.

“We were ripped off in the Panama Canal just like we were ripped off everywhere else,” he said at the event in Arizona, adding that the United States “foolishly gave up on this.”

After America Day, Trump posted a photo on his Truth social platform of an American flag flying over a narrow body of water with the caption: “Welcome to America’s Canal!”

After Trump issued his statement, he and Panamanian President Mulino traded barbs.

“Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue to belong to (Panama),” Mulino said in a recorded statement posted on his X account.

Trump retweeted a news article about Mulino’s statement on his Truth Social platform with the caption: “We’ll see about that.”

Trump also hinted at China’s growing influence over the Panama Canal in a Truth Society post on Saturday. “This is entirely for Panama to manage, not China or anyone else,” he wrote. “We’ll never let it fall into the wrong hands!”

China does not control the canal. However, Hong Kong-based CK Hutchison has been operating two canal ports at the entrance to the Caribbean and Pacific Ocean since 1997.

Mulino also said in a statement on Sunday that China has no influence over the Panama Canal.

What is the point of contention?

The Panama Canal is a man-made waterway built on the Isthmus of Panama that connects the Pacific and Atlantic Oceans.

Up to 14,000 ships pass through the canal each year. The waterway is estimated to account for 2.5% of global maritime trade and 40% of all U.S. container traffic.

The canal is vital to U.S. imports of goods from Asia. The United States also uses the waterway to export goods, including liquefied natural gas.

Who built the canal?

The canal was built between 1904 and 1914, primarily by the United States, with construction overseen by then-President Theodore Roosevelt.

Who owns it?

The Panamanian government owns the canal.

When did Panama gain ownership?
On December 31, 1999, the United States transferred ownership of the canal to Panama under a 1977 treaty signed by then-President Jimmy Carter.

“If the moral and legal principles of this generous gesture of donation are not adhered to, then we will demand the full, swift and unquestionable return of the Panama Canal to the United States of America,” Trump said.

The president-elect did not provide further details on how that would be accomplished.

Have the canals dried up?

2023, drought The situation in Central America artificial Panama Canal.

The canal relies on the nearby man-made Gatun Lake to operate its locks. Low lake levels have led canal authorities to limited quantity Restrict ships’ use of waterways and raise user fees.

The number of ships in the Panama Canal fell by 29% last fiscal year. A total of 9,944 people traveled across the canal between October 2023 and September 2024, compared with 14,080 people the previous year.

Traffic on the canal is now back to pre-drought levels. However, fees are expected to increase next year.

“Tariffs are not a whim,” Mulino said in a statement, adding that the increased freight charges would help pay for improvements the Panamanian government is making to allow more ships to pass through the canal.

What advice does Trump have?

Ahead of November’s vote, Trump’s presidential campaign builds on non-interventionism “America First” policy. However, since being elected president, he has repeatedly suggested “territorial expansion” and the Panama Canal is one of the territories he has recently flagged as possible.

Trump also hinted at Canada. On December 18, he posted on TruthSocial: “Many Canadians want Canada to be the 51st state. They would save a lot of tax and military protection. I think it’s a great idea. The 51st state!!!”

It’s unclear whether the president-elect is serious. His comments come amid heightened tensions between the United States and Canada. Canada’s Finance Minister Chrystia Freeland resigns after Trump recently threatened to impose tariffs on goods from the northern neighbor Increased pressure Prime Minister Justin Trudeau is urged to resign.

Trump also expressed interest in Greenland, a self-governing Danish territory. On Monday, Trump announced on The Truth Society that he had appointed Ken Howery as US ambassador to Denmark, adding in the post: “The United States of America believes it is absolutely necessary to own and control Greenland of”.

Trump also made this suggestion during his first term, but it was rejected by Danish authorities, with the Danish prime minister telling Danish media that Greenland was not for sale.