Trump threatens to try to take back the Panama Canal. Panamanian president balks at suggestion

PHOENIX (AP) — Donald Trump said Sunday his new administration may try to regain control of the Panama Canal the United States “foolishly” ceded to its Central American ally, arguing shippers were being charged The “ridiculous” cost to travel through this important canal.

Panamanian conservative President José Raúl Mulino, who was elected in April on a pro-business platform, has flatly rejected the idea as an affront to his country’s sovereignty.

The Republican president-elect made the remarks during his first major rally since taking office in the White House on November 5. It was a show of partisan unity that ran counter to the budget fight that just ended on Capitol Hill, where some Republican lawmakers openly defied their leaders’ demands.

Trump spoke to supporters at the Turning Point USA festival in Arizona, promising that his “Dream Team Cabinet” would deliver economic prosperity, seal U.S. borders and quickly resolve wars in the Middle East and Ukraine.

“I can proudly declare that America’s golden age is upon us,” Trump said. “We have a spirit now that we didn’t have not so long ago.”

His appearance capped four days of pep rallies that drew more than 20,000 activists and presented an image of Republican cohesion despite the turmoil in Washington over the past week, with Trump speaking at Mar-a-Lago in Florida. Maneuvering behind the scenes, Congress struggles to avoid forming a government as the Christmas holidays approach.

House Republicans blasted a bipartisan deal after Trump and his billionaire ally Elon Musk expressed their opposition on social media. Budget hawks have ignored Trump’s demands to raise the national debt ceiling, which would avoid a new round of the same fight if Trump takes office on January 20, 2025, with slim Republican control of the House and Senate. The final agreement did not resolve the issue and did not provide closure.

Trump made no mention of the drama in Congress during his speech in Phoenix, although he did mention Musk’s growing power. Regarding the statement that “President Trump has ceded the presidency to Elon,” Trump made it clear, “No, no. That’s not going to happen.”

“He’s not going to be president,” Trump said.

“We want to try to bring people together. We’re going to try. We’re going to really try,” the president-elect said at the start of his speech. He then said Democrats had “lost confidence” and were “confused” after the election, but will end up “on our side because we want them.”

Among a host of grievances—some old, some new—top of the list is the Panama Canal.

“We were ripped off on the Panama Canal,” he said, lamenting that his country “foolishly abandoned it.”

The United States built the Panama Canal in the early 1900s, looking for a way to facilitate passage of commercial and military vessels between its coasts. Washington relinquished control of the Panama waterway on Dec. 31, 1999, under a 1977 treaty signed by President Jimmy Carter.

The canal relies on reservoirs to control its locks and has been severely affected by a drought in Central America in 2023, forcing it to drastically reduce the number of daily ship crossings. With fewer ships using the canal each day, managers have also increased the fees they charge all shippers to book space.

As the weather returns to normal in the second half of the year, so does canal traffic. But prices are still expected to rise next year.

Panamanian President Mulino is described as a conservative populist who aligns with Trump on many issues. Panama is a powerful ally of the United States and the canal is vital to its economy, accounting for about a fifth of the country’s government’s annual revenue.

However, Trump said that once his second term begins, “If the moral and legal principles of this generous gesture of donation are not followed, then we will demand that the Panama Canal be returned to the United States of America.” doubt.

Trump said: “I will not support this approach. Therefore, Panamanian officials are asked to receive appropriate guidance.”

He did not explain how this was possible.

Shortly after Trump spoke, Mulino released a video declaring that “every square meter of the canal belongs to Panama and will continue to belong” to his country.

Mulino did not mention Trump by name, but he responded to the president-elect’s complaints about rising fees for ships transiting the canal, saying the fees are set by experts and take into account operating costs as well as supply and demand factors.

“Tariffs are not just a whim,” Mullino said. He noted that Panama has “proactively” expanded the canal over the years to increase ship traffic, adding that rising freight rates have helped pay for improvements.

“Panamanians may have different views on many issues,” Mulino said. “But when it comes to our canal and our sovereignty, we will be united under the Panamanian flag.”

Canal aside, Trump’s presence at Turning Point’s annual gathering confirmed the growing influence of the organization and its founder, Charlie Kirk, within the conservative movement. Kirk’s organization employs thousands of field organizers in the presidential battleground, helping Trump make key gains among infrequent voters and other groups that have leaned Democratic in recent decades, including young voters, black men and Latinos American male.

“You have the grassroots military of Turning Point,” Trump said. “It’s not my victory, it’s your victory.”

Also on Sunday, Trump said he had chosen Stephen Millan, who worked at the Treasury Department during Trump’s first term, to lead the Council of Economic Advisers. He also announced the selection of venture capitalist Scott Kupor as director of the Office of Personnel Management, the government’s main human resources agency.

Australian billionaire Anthony Pratt announced he would donate $1.1 million to Trump’s first fund, to supplement the $14 million he said he had already donated to the Make America Great Again super PAC dollars, making him one of the president-elect’s largest donors.

Pratt is chairman of Pratt Industries, which uses recycled paper and boxes as feedstock in the production of new paperboard.

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Weissert reported from West Palm Beach, Florida. Associated Press writer Manuel Rueda in Bogota, Colombia, contributed to this report.