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Panama Canal 'will continue to be Panamanian,' country's president says in response to Trump

Doubling down on his pre-inauguration threat to reimpose U.S. control over the canal, Trump, in his inauguration speech Monday, again accused Panama of breaking the promises it made for the final transfer of the strategic waterway in 1999 and of ceding its operation to China — claims that Panama has vehemently denied.

U.S. president invokes 'Manifest Destiny' in inauguration speech vowing to retake canal

This composite image shows two people delivering speeches.
Panama's President Jose Raul Mulino, right, said Monday that the Panama Canal 'is and will continue to be Panamanian,' in response to U.S. President Donald Trump's comments about taking back the canal. (Cheney Orr, Eduardo Munoz/Reuters)

Newly sworn-in  U.S. President Donald Trump vowed on Monday that the United States would take back the Panama Canal as he delivered an inauguration speech in which he invoked the 19th century expansionist doctrine of "Manifest Destiny."

Doubling down on his pre-inauguration threat to reimpose U.S. control over the canal, Trump again accused Panama of breaking the promises it made for the final transfer of the strategic waterway in 1999 and of ceding its operation to China — claims that the Panamanian government has vehemently denied.

"We didn't give it to China. We gave it to Panama, and we're taking it back," Trump said.

He gave no further details on when or how he intended to do that, but had previously refused to rule out possible use of military force, which drew criticism from Washington's Latin American friends and foes alike.

Panama's President Jose Raul Mulino on Monday responded on X that his country has administered the canal responsibly for world trade, including for the U.S., and that it "is and will continue to be Panamanian."

A container ship transit through a canal.
A container ship transits through the Cocoli Locks at the Panama Canal, on the outskirts of Panama City, in August 2024. (Enea Lebrun/Reuters)

Trump's reiteration of his threat about the Panama Canal as he began his second term was his most blatant mention of an agenda for territorial expansion that he has laid out in recent weeks.

In the run-up to his inauguration, he had also said he wanted to acquire Greenland, portraying the overseas Danish territory as crucial for U.S. national security interests, and mused about turning Canada into a U.S. state.

'We will pursue our Manifest Destiny'

Critics have accused Trump of language that evokes modern-day imperialism, suggesting such rhetoric could encourage Russia in its invasion of Ukraine and give justification to China if it decides to invade self-ruled Taiwan.

Some analysts have questioned whether Trump is serious about pursuing what critics say would be a land grab, speculating he may be laying down an extreme negotiating position to squeeze out later concessions. In his first term from 2017-2021, Trump was known for issuing some headline-grabbing threats and pronouncements that he failed to deliver on.

WATCH | Trump seems to suggest military involvement not off table for Panama Canal: 

Trump seems to suggest U.S. military involvement is not off the table for Panama Canal

13 days ago
Duration 1:00
President-elect Donald Trump on Tuesday said the Panama Canal is 'vital' to the U.S. and that treaties signed by former president Jimmy Carter to cede canal control to the Central American country were a 'big mistake.'

While Trump made no mention of Greenland or Canada in his inaugural address, he offered hints of territorial aspirations during his second four-year term.

"The United States will once again consider itself a growing nation, one that increases our wealth, expands our territory, builds our cities, raises our expectations and carries our flag into new and beautiful horizons," he said.

"And we will pursue our Manifest Destiny into the stars, launching American astronauts to plant the stars and stripes on the planet Mars," Trump said.

Manifest Destiny, a phrase originally coined in the mid-1800s, was the belief in a God-ordained right of the U.S. to expand its control throughout North America, and was used to justify the seizure of lands from Mexico and from Native Americans.

In Monday's speech, Trump also repeated his promise to change the name of the Gulf of Mexico to the Gulf of America.

WATCH | Hillary Clinton laughs as Donald Trump says he'll rename Gulf of Mexico: 

Hillary Clinton laughs as Donald Trump says he'll rename Gulf of Mexico

13 hours ago
Duration 0:19
Former first lady and presidential candidate Hillary Clinton laughed as U.S. President Donald Trump announced during his inaugural address that he would rename the Gulf of Mexico to the Gulf of America.

Trump said the U.S. had "foolishly" given the Panama Canal to Panama.

The United States largely built the canal and administered territory surrounding the passage for decades. But the United States and Panama signed a pair of accords in 1977 that paved the way for the canal's return to full Panamanian control. The United States handed it over in 1999 after a period of joint administration.

"We have been treated very badly from this foolish gift that should have never been made, and Panama's promise to us has been broken. The purpose of our deal and the spirit of our treaty has been totally violated," Trump said.


He said U.S. ships are "being severely overcharged and not treated fairly in any way, shape or form."

Panama has insisted that it treats fairly all vessels that transit the canal, and has said China has no control over its administration.

China does not control or administer the canal, but a subsidiary of Hong Kong-based CK Hutchison Holdings 0001.HK has long managed two ports located on the canal's Caribbean and Pacific entrances.

The canal is an 82 kilometre artificial waterway that connects the Pacific and Atlantic Oceans through Panama and is critical to U.S. imports of autos and commercial goods by container ships from Asia, and for U.S. exports of commodities, including liquefied natural gas.