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President-elect Donald Trump has demanded that Panama lower tolls on the Panama Canal or return it to US control, accusing the Central American country of charging “exorbitantly high prices” to US naval and naval vessels.
“The tolls that Panama is charging are ridiculous and very unfair,” he told a crowd of supporters in Arizona on Sunday.
“This complete theft of our country must stop immediately,” he said, referring to when he takes office next month.
His remarks drew a swift rebuke from Panama’s president, who said “every square meter” of the canal and surrounding land belonged to his country.
President José Raúl Molina added that Panama’s sovereignty and independence are non-negotiable.
Trump made the comment to supporters of Turning Point USA, a conservative activist group that has provided significant support for his 2024 campaign.
It was a rare example of a US leader saying he might push the country to hand over territory – although he did not explain how he would do it – and a sign that US foreign policy and diplomacy could change when he enters the White House after his inauguration took place on January 20.
Trump’s comments followed a similar announcement a day earlier in which he said the Panama Canal was a “critically important national asset” for the United States.
Trump said Sunday that if shipping tariffs were not reduced, “we will demand that the Panama Canal be returned to us in full, quickly and without question.”
The 51-mile (82 km) Panama Canal cuts through the central American country and is the main link between the Atlantic and Pacific oceans.
It was built in the early 1900s, and the US maintained control of the Canal Zone until 1977, when the land was gradually returned to Panama by treaty. After a period of joint control, Panama assumed sole control in 1999.
Up to 14,000 ships pass through the canal a year, including container ships with cars, natural gas and other cargoes, as well as warships.
In addition to Panama, the president-elect also targeted Canada and Mexico for what he called unfair trade practices. He accused them of allowing drugs and immigrants into the United States, although he called Mexican President Claudia Scheinbaum a “wonderful woman.”
Trump made his remarks in front of thousands at the annual Turning Point conference, one of the nation’s largest gatherings of conservative activists.
Turning Point has invested heavily in swing-state voter efforts to support Trump and other Republicans on the campaign trail.
It was his first speech since Congress passed a deal this week to keep the US government open after removing several provisions, including one that raised the nation’s debt ceiling.
Trump has supported raising the debt ceiling, which limits the amount of money the US government can borrow.
But in a speech on Sunday, he sidestepped the issue entirely, instead summarizing his election victory and touching on topics including immigration, crime and foreign trade that have been central to his campaign.
However, he did mention Elon Musk.
“You know, they’re on a new path,” he said. “All different deceptions. The new thing is that President Trump has ceded the presidency to Elon Musk.”
“No, no, that’s not happening,” he said. “He will not be president.”
Several speakers at the conference were critical of government spending and policies of both parties — but the divisions within the Republican Party that have played out in Congress in recent days have been largely muted.