Trump demands Panama lower Canal fees or return it to US

US President-elect Donald Trump criticized the fees for using the Panama Canal, a crucial shipping route, on Saturday night, insisting that the costs be reduced or Panama should return the canal to the United States.

"Our Navy and Commerce have been treated in a very unfair and injudicious way. The fees being charged by Panama are ridiculous," he said in a post on his Truth Social platform.

The United States largely built the Panama Canal and administered its territory for decades before transferring complete control to Panama in 1999.

Panama charges tariffs for boats and ships using its canal, with fees varying by size and purpose.

Trump cites China's influence

Trump cautioned that the canal should not fall into the "wrong hands," specifically warning against Chinese management.

"It was not given for the benefit of others, but merely as a token of cooperation with us and Panama. If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without question," he wrote.

The Panama Canal Authority, an independent agency of the Panama government, oversees the Panama Canal. A company based in Hong Kong manages two ports at each end of the Panama Canal, while Chinese state-owned firms are investing in infrastructure surrounding the canal. No Chinese government or business has a direct role in managing traffic through the waterway.

There was no immediate reaction from authorities in Panama.

Around 5% of global maritime traffic uses the Panama Canal, allowing ships to bypass the long route around South America between Asia and the US East Coast.

The US is the canal's biggest customer, followed by China and Japan. 

In October, the Panama Canal Authority announced record revenues of nearly $5 billion (€4.8 billion) for the last fiscal year.

lo/sms (Reuters, AFP)