During a rally in Phoenix, Arizona, former President Donald Trump sparked controversy by implying that his administration could seek to regain control of the Panama Canal, which the United States handed over to Panama in 1999 through a treaty signed by President Jimmy Carter. Trump condemned the canal’s pricing system, labeling the fees as “absurd” and asserting that the U.S. was being “taken advantage of.”
Panama’s conservative president, José Raúl Mulino, swiftly rejected Trump’s comments, calling them an affront to his nation’s sovereignty. Mulino emphasized that the canal, a vital economic resource generating 20% of Panama’s revenue, belongs entirely to his country. He defended the fee increases, explaining they are based on expert analyses of operational costs and demand, and help fund improvements to the canal.
“Each square meter of the canal is owned by Panama and will remain under Panama’s ownership,” Mulino stated in a video reply. He mentioned that Panamanians, despite their political disagreements, stand together in safeguarding their sovereignty.
Trump’s comments occurred at his initial significant rally after securing the 2024 presidential election victory. Speaking to more than 20,000 fans at Turning Point USA’s AmericaFest, Trump emphasized his goals for a potential second term, which include a thriving economy, secure borders, and settling global disputes. He stated, “America’s Golden Age is here.”
Although Trump touted unity, his rally followed a contentious budget fight in Washington. Congressional Republicans rejected a bipartisan deal after Trump and Elon Musk, one of his key allies, voiced opposition online. While Congress narrowly avoided a government shutdown, tensions between Trump and GOP lawmakers persist.
Trump did not address the budget drama directly but dismissed suggestions that Musk wielded outsized influence over his administration. “He’s not gonna be president,” Trump said, asserting his control.
The former president’s remarks on the Panama Canal invoked nostalgia for the canal’s U.S.-controlled era. “If the moral and legal principles of this magnanimous gesture of giving are not followed, we will demand the canal be returned to the United States,” Trump declared, without outlining how this would be achieved.
In response, Mulino firmly stated, “The tariffs are not set on a whim,” and assured that Panama remains committed to its sovereignty. Trump responded on social media with a defiant “We’ll see about that!” alongside an image of the canal labeled, “Welcome to the United States Canal!”
The rally also highlighted Trump’s deepening ties with Turning Point USA, which played a significant role in mobilizing conservative voters. Trump announced key appointments for his administration, including Stephen Miran as chair of the Council of Economic Advisers and Callista Gingrich as ambassador to Switzerland.
Australian billionaire Anthony Pratt also announced a $1.1 million donation to Trump’s inaugural fund, bolstering his support from major donors.