Trump Demands Return of the Panama Canal if ‘Rip-Off’ Transit Prices Not Lowered For American Ships

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President-elect Trump threatens to demand the return of the Panama Canal if transit fees remain unfair to the United States.

Key Facts:

– President-elect Trump spoke at Turning Point’s “American Fest” where he called for more reasonable fees at the Panama Canal.
– The canal was transferred to Panama from the U.S. in 1999.
– Ships using the canal pay fees that can range from under one dollar to hundreds of thousands.
– Around 14,000 vessels transit the waterway each year, representing 2.5% of global maritime trade.

The Rest of The Story:

At a recent event, Trump criticized Panama for charging what he considers excessively high fees at the canal, arguing that these costs are unfair given America’s past role in building and then transferring it.

The president-elect also used his social media platform to say this “rip-off” of the United States must stop immediately.

He contends that if Panama refuses to lower charges, the U.S. could demand the canal’s return, referencing what he views as the original conditions of the handover.

Control of the waterway passed from the U.S. to Panama more than two decades ago, but Trump claims Panama hasn’t upheld the fair treatment terms in that agreement.

Commentary:

Trump’s call for the canal to be returned may sound extreme, but it seems like an opening play in a broader negotiation.

By setting a dramatic goal, he amplifies his charge that American vessels are overpaying, hoping to pressure Panama into offering better terms.

Democrats and the media might overreact to the rhetoric, yet it’s quite possible Panama will eventually lower transit costs to keep relations stable.

While this approach can appear inflammatory, it’s a familiar strategy aimed at securing a more favorable deal for U.S. interests.

The Bottom Line:

Trump wants lower transit costs for American ships and is willing to push hard for those terms.

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Whether Panama meets his demand or faces renewed pressure over the canal remains to be seen.