By Maggie Adams
December 28, 2024
Image Credit: “President Trump Made A Really Weird Statement About the Panama Canal, uproxx.com” available at Yahoo Images (12/28/2024).
Donald Trump ignited international debate Sunday by suggesting his administration might pursue regaining control of the Panama Canal. He argued that the United States "foolishly" surrendered the vital waterway and criticized the "ridiculous" fees imposed on shippers. His comments were swiftly rebuked by Panamanian President José Raúl Mulino, who called the notion an affront to his country's sovereignty.
Speaking at Turning Point USA's AmericaFest in Arizona, Trump made the controversial remarks during his first major rally since reclaiming the White House on November 5. Addressing thousands of enthusiastic supporters, the president-elect promised sweeping changes, from revitalizing the U.S. economy to resolving conflicts in the Middle East and Ukraine. Yet, his remarks about the Panama Canal dominated headlines and sparked a diplomatic response.
"We're being ripped off at the Panama Canal," Trump told the crowd. "We foolishly gave it away, but we're going to look into getting it back. Suppose the moral and legal principles of this magnanimous gesture of giving are not followed. In that case, we will demand that the Panama Canal be returned to the United States of America, in full, quickly, and without question."
Panama's President Mulino, who took office in May on a pro-business platform, responded firmly in a video statement, affirming his nation's ownership of the canal. "Every square meter of the canal belongs to Panama and will continue to belong to Panama," he declared. Mulino emphasized that experts determine shipping tariffs and reflect operational costs and market conditions without directly naming Trump.
"The tariffs are not set on a whim," Mulino said. He highlighted Panama's investments in expanding the canal to accommodate increased traffic and maintain global shipping efficiency. "Panamanians may have different views on many issues, but when it comes to our canal and our sovereignty, we will all unite under our Panamanian flag."
The Panama Canal, a crucial artery for international trade, was completed by the United States in the early 20th century. It connects the Atlantic and Pacific Oceans, significantly reducing shipping times and costs. Control of this vital waterway was transferred to Panama on December 31, 1999, under a treaty signed by President Jimmy Carter in 1977. Trump's Sunday remarks marked the first time he suggested attempting to reclaim it, a move that could have significant implications for global trade.
Mulino's rebuke highlighted Panama's reliance on the canal, which generates about one-fifth of its government revenue. Recent droughts in Central America caused operational challenges and fee increases, but canal authorities have since normalized transit while planning additional rate adjustments for 2024.
Trump's proposal, however, lacked specifics on how the United States might assert control. His blunt declaration—"So to the officials of Panama, please be guided accordingly"—left many questioning the feasibility and implications of such a move.
Shortly after his rally, Trump doubled down on his statement via social media, posting an image of an American flag planted in the canal zone with the caption, "Welcome to the United States Canal!" The post sparked heated reactions domestically and abroad.
Trump's comments came amidst broader efforts to project strength and unity within the Republican Party. His rally, attended by more than 20,000 conservative activists, showcased the influence of Turning Point USA and its founder, Charlie Kirk. The organization has been credited with energizing key voter groups, including younger voters and Latino men, contributing to Trump's recent electoral success.
At the rally, Trump sought to unite his supporters, emphasizing the collective victory. "You had Turning Point's grassroots armies," Trump told the crowd. "It's not my victory; it's your victory." This message of unity and shared success resonated with the thousands of conservative activists in attendance.
Despite his focus on unity, Trump sidestepped recent discord within Republican ranks over a budget deal in Congress. House Republicans, encouraged by Trump and Elon Musk, had derailed a bipartisan agreement to raise the nation's debt ceiling. However, a government shutdown was ultimately avoided.
At the rally, Trump sought to clarify his relationship with Musk, dismissing speculation that the tech mogul wielded excessive influence. "To suggest that 'President Trump has ceded the presidency to Elon,' I say no. That's not happening," Trump remarked. "He's not gonna be president."
The event also featured announcements about Trump's incoming administration. Stephen Miran, a former Treasury Department official, was appointed as the head of the Council of Economic Advisers, and Callista Gingrich was appointed ambassador to Switzerland. Australian billionaire Anthony Pratt, a top donor to Trump's campaign, pledged an additional $1.1 million to the president-elect's inaugural fund.
While Trump's speech covered a range of issues, his comments about the Panama Canal stood out. His proposal to reclaim the canal could potentially strain relations with Panama, a key ally. Panama's strategic location and the global importance of its canal make it a sensitive topic. Mulino's swift and resolute response underscored the potential diplomatic fallout of Trump's remarks.
As Trump prepares to take office, his administration faces questions about navigating such international challenges. The Panama Canal remains firmly under Panamanian control, with Mulino vowing to defend his nation's sovereignty against any threats—rhetorical or otherwise.
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