Panama President Dismisses Donald Trump Threat: ‘Nonsense’

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Panama's president has openly dismissed a recent claim from President-elect Donald Trump that China interfered with the Panama Canal, calling the remark "nonsense."

Panamanian President José Raúl Mulino denied the claim on Thursday at a news conference.

It came after Trump wrote in a message on Truth Social on Wednesday: "Merry Christmas to all, including to the wonderful soldiers of China, who are lovingly, but illegally, operating the Panama Canal".

"There is absolutely no Chinese interference or involvement in anything that has to do with the Panama Canal," Mulino said at a Thursday news briefing. "There are no Chinese at the canal, no Chinese nor any other world power at the canal."

Panama President José Raúl Mulino and Donald Trump. Mulino has dismissed claims from Trump the the Panama Canal could fall into the hands of China. Panama President José Raúl Mulino and Donald Trump. Mulino has dismissed claims from Trump the the Panama Canal could fall into the hands of China. AP Mulino added: "If they're Chinese, if they're Costa Rican, if they're American, all are welcome who want to invest in the country. There is no discrimination here in foreign investment.

"There are no Chinese soldiers in the canal, for the love of God. It's nonsense. There is not a single Chinese soldier in the canal."

Mulino also rejected the possibility of reducing tolls for U.S. ships or ceding control of the canal, a major shipping channel that connects the Atlantic and Pacific oceans.

"The canal is Panamanian and belongs to Panamanians. There's no possibility of opening any kind of conversation around this reality," he said.

Newsweek has contacted Trump's transition team via email for a response.

Why It Matters Trump has stirred controversy by threatening to reclaim the Panama Canal, calling the fees charged by Panama "ridiculous" and "highly unfair." Speaking to a crowd of conservative activists on Sunday, Trump declared: "If shipping rates are not lowered, we will demand that the Panama Canal be returned to us, in full, quickly and without question."

The Panama Canal, a vital trade artery, sees around 14,000 ships transit annually, according to Statista. Opened by the U.S. in 1914, the canal provides a crucial shortcut for cargo vessels traveling between the American continents, significantly reducing transit times and costs.

The U.S. controlled the canal zone until 1977, when treaties initiated a gradual transfer of authority to Panama. After a period of joint administration, Panama assumed full control in 1999.

Trump, in a Truth Social post on Saturday, labeled the canal a "vital national asset" for the U.S. and "crucial" for commerce and national security. He criticized Panama for what he described as "very unfair and injudicious" actions, writing: "The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S."

Trump has also raised concerns about the canal "falling into the wrong hands," specifically citing China's involvement. Panama established diplomatic ties with China in 2017 after breaking relations with Taiwan. China, now the second-largest user of the canal after the U.S., has made significant investments in Panama. Additionally, CK Hutchison Holdings, a Hong Kong-based company, manages two ports at the canal's entrances. China is also responsible for large parts of the canal's infrastructure, with Chinese firms funding the construction of a new bridge over the canal to the tune of over $1 billion. However, the Panama Canal Authority, an autonomous government agency, oversees the canal's administration.

Relations between Panama and China remain "respectful, well-managed ... in terms of what is in the interest of both countries," according to remarks by Panamanian officials.

Meanwhile, canal transit costs have risen over the past year, driven by a historic drought, according to the shipping industry website Lloyd's List.

What To Know Since winning the election, Trump has signaled a strong "America First" approach to trade and foreign policy, pushing for rebalanced deals on the U.S.'s foreign financial commitments.

He has threatened tariffs on various economic partners, suggested Canada should become the 51st state, and said the U.S. should leave more allies to fund their own defense.

Other recent proposals from Trump have included suggesting the U.S. purchase Greenland from Denmark and imposing large tariffs on Mexico and Canada.

Meanwhile, he has also signaled a hard stance on China. The president-elect has nominated prominent China hawks Marco Rubio and Mike Waltz to be secretary of state and national security adviser, respectively, in a signal of his hostile approach to the country. He has also threatened to slap an additional 10 percent tariff on all Chinese exports to the U.S., and to sanction Chinese electric cars being built in Mexico to sidestep tariffs, as well as eliminate more of Beijing's remaining trade privileges, possibly igniting a trade war with the country.

What Are People Saying Chinese Foreign Ministry spokeswoman Mao Ning said: "China has always supported the people of Panama in their just struggle for sovereignty over the Canal. China will always respect Panama's sovereignty over the Canal and recognize the Canal as a permanently neutral international waterway.

"We believe that under the efficient running of Panama, the Canal will continue to make new contributions to facilitating integration and exchanges between people of different countries and enhancing humanity's well-being."

Panama President José Raúl Mulino said: "The tariffs are not set on a whim but based on expert assessments of operational costs and market dynamics."

"China does not control or administer the canal. When it comes to our canal, and our sovereignty, we will all unite under our Panamanian flag."

Former Congressman Matt Gaetz wrote on X: "We aren't taking the canal back from Panama. We are taking it back from China."

Conservative attorney Mike Davis said: "China is taking over the Panama Canal. We can't let that happen," arguing that it was fine for the U.S. to appear "dangerously regressive," if it decreased Chinese influence over the region.

What Happens Next It is currently unclear if Trump plans to follow through with his threat to take back the Panama Canal. However, Trump is likely to continue pushing an "America First" approach to foreign policy in his upcoming administration.

Meanwhile, such rhetoric from Trump as he prepares to assume the presidency in January could impact diplomatic ties and economic interactions in China.

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