Panamanian President Jose Raul Molino reasserted the country’s sovereignty over the Panama Canal on Sunday after US President-elect Donald Trump threatened to retake the canal.

“Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue to belong,” Molino said in a recorded statement released to X, adding that Panama’s sovereignty and independence are non-negotiable.

Trump’s threats

President-elect Donald Trump has threatened to restore US control of the Panama Canal, accusing Panama of charging excessive fees to use the Central American passage, which allows ships to cross the Pacific and Atlantic oceans.

In a Saturday night post on Truth Social, Trump also warned that he would not let the channel fall into the “wrong hands” and appeared to warn of possible Chinese influence over the passage, writing that the channel should not be run by the china.

China does not control or manage the canal. However, a Hong Kong-based subsidiary of CK Hutchinson Holdings operates two ports located at the Caribbean and Pacific entrances to the canal, respectively.

The post was an extremely rare example of a US leader saying he could pressure a sovereign country to hand over territory. It also highlights an expected shift in US diplomacy under Trump, who has historically not shied away from threatening allies and using belligerent rhetoric when dealing with his counterparts.

“The fees charged by Panama are ridiculous, especially given the extraordinary generosity the US has shown Panama,” Trump wrote in his post on Truth Social.

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

The Panamanian embassy in Washington did not respond to a request for comment.

The United States largely built the canal and ruled the area around the pass for decades. But the United States and Panama signed a series of agreements in 1977 that paved the way for the return of the canal to full Panamanian control. The United States handed over control of the canal in 1999 after a period of joint administration.

The waterway, which allows the passage of up to 14,000 ships a year, accounts for 2.5% of global maritime trade and is critical for US imports of automobiles and commercial goods from Asian container ships and for US merchandise exports , including liquefied natural gas. .

It is unclear how Trump would seek to regain control of the canal, and he would have no recourse under international law if he decided to make a play for the passage.

This is not the first time that Trump has openly considered territorial expansion.

In recent weeks, he has repeatedly considered turning Canada into a US state, although it is unclear how serious he is about the matter. During his 2017-2021 term, Trump expressed interest in buying Greenland, an autonomous territory of Denmark. He was publicly rebuffed by the Danish authorities before any talks could take place.