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Trump Threatens Panama Canal Takeover, Revives Greenland Acquisition Push

President-elect Donald Trump demands Panama lower canal fees or return control to the U.S., while doubling down on calls to acquire Greenland for national security.

Overview

  • Donald Trump has called for Panama to reduce transit fees for U.S. ships using the Panama Canal, labeling the charges a 'rip-off' and threatening to reclaim control of the canal if demands are not met.
  • Panamanian President José Raúl Mulino firmly rejected Trump's remarks, asserting the canal's sovereignty and its status as an inalienable national asset under Panamanian control.
  • Trump also renewed his controversial proposal to acquire Greenland, citing national security and global freedom as key motivations, and announced Ken Howery as the U.S. ambassador to Denmark.
  • The Panama Canal, which facilitates 5% of global maritime trade, remains critical for U.S. commerce, with 72% of its traffic involving American ports, despite recent disruptions caused by drought-related traffic reductions.
  • Both Panama and Denmark have dismissed any possibility of transferring control of the canal or Greenland, setting the stage for heightened tensions as Trump prepares to assume office in January.