Panama’s President José Raúl Mulino rejected Donald Trump’s threat to reassert US control over the Panama Canal, affirming that the nation’s sovereignty over the critical waterway remains non-negotiable.
In a video statement on social media, Mulino declared, “Every square meter of the Panama Canal and its adjacent zones is part of Panama, and it will continue to be.”
Trump’s comments came after he criticized Panama’s tolls as “ridiculous” and warned of China’s growing influence in the region.
While Mulino defended the toll structure, asserting that it is based on operating costs and market conditions, Trump doubled down, saying, “We’ll see about that!” on his Truth Social platform.
Despite claims of Chinese encroachment, Panama maintains that China does not control the canal. A Chinese firm, a subsidiary of CK Hutchison Holdings, operates two ports adjacent to the canal, but Panama’s constitution gives the Panama Canal Authority exclusive control over the waterway.
The authority reported nearly $2.5 billion in tolls collected in the last fiscal year, with some funds contributing to Panama’s national treasury.
Trump’s threat, less than a month before his inauguration, marks a new diplomatic push to apply pressure on international trading partners.
In remarks to a conservative crowd in Phoenix, Trump warned of the canal “falling into the wrong hands” and stated, “It’s not for China or any other country to manage.”
On Facebook, he posted an image of a US-flagged vessel with the caption, “Welcome to the United States Canal!”
Chinese Foreign Ministry spokesperson Mao Ning rejected the idea of foreign control, stating that the canal remains neutral and under Panama’s sovereignty. She emphasised that China respects Panama’s control and sees the canal as a permanently neutral international waterway.
Mulino, for his part, underscored Panama’s unyielding control, citing US-Panamanian treaties that guarantee the canal’s neutrality and Panama’s sovereignty. He also pointed out that the canal’s tolls were transparent and in line with market conditions.
“Our country’s sovereignty and independence are not negotiable,” he asserted.
The Panama Canal remains a crucial global trade chokepoint, especially amid ongoing drought conditions that have slowed crossings.
While Trump’s remarks raised questions about potential US intervention, Mulino made it clear that Panama would continue to defend its rights over the waterway as an inalienable national asset.
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