President-elect Donald Trump has threatened Panama to either reduce the fees on the Panama Canal or return it to the United States control, stating that the central American country is charging "exorbitant prices" to American shipping and naval vessels.
"The fees being charged by Panama are ridiculous, highly unfair," he said before a crowd of supporters in Arizona on Sunday.
"This total rip-off of our country will cease immediately," he said, referring to when he takes office next month.
His comments were quickly rebuked by Panama's president, who said "every square metre" of the canal and surrounding area belongs to his country.
Panama's President José Raúl Mulino said sovereignty and independence are not up for discussion.
Trump made the comments to supporters of Turning Point USA, a conservative activist group that provided significant support to his 2024 election campaign.
It was a rare example of a US leader saying he could push a country to hand over territory - although he did not explain how he would do so - and a sign of how American foreign policy and diplomacy may shift once he enters the White House following his inauguration on 20 January.
Trump's remarks came a day after he made a similar post, stating that the Panama Canal is a "vital national asset" for the United States.
If shipping rates are not reduced, Trump said Sunday, "we will demand that the Panama Canal be returned to us, in full, quickly and without question.".
The 51-mile (82km) Panama Canal cuts across the central American nation and forms the main link between the Atlantic and Pacific oceans.
It was constructed in the early 1900s and the US maintained control over the canal zone until 1977, when treaties gradually ceded the land back to Panama. After a period of joint control, Panama took sole control in 1999.
Up to 14,000 ships cross the canal per year, including container ships carrying cars, natural gas and other goods, and military vessels.
Apart from Panama, the president-elect also targeted Canada and Mexico over what he said was unfair trade practices. He accused them of letting drugs and immigrants into the US, although he described Mexican President Claudia Sheinbaum as a "wonderful woman".
Trump hits the usual themes
Trump spoke to thousands at the annual conference, one of the country's largest gatherings of conservative activists.
Turning Point poured vast resources into get-out-the-vote efforts in key swing states designed to pump up Trump and other Republicans during the election campaign.
This is his first speech since a deal passed Congress this week to keep the US government open, after several provisions were removed including one that would have increased the country's debt ceiling.
Trump had supported raising the debt ceiling, which restricts the amount of money the US government can borrow.
But his speech on Sunday completely avoided that issue, simply recapping his election victory and hitting on themes that were mainstays of his campaign – including immigration, crime and foreign trade.
He did, though, mention Elon Musk.
"You know, they're on a new kick," he said. "All the different hoaxes. The new one is that President Trump has ceded the presidency to Elon Musk."
"No, no, that's not happening," he said. "He's not gonna be president."
Several speakers here at the conference were critical of government spending and of politicians in both parties – however the divisions inside the Republican Party which have played out in Congress in recent days were mostly muted.
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