President Donald Trump used his inaugural speech on Monday to attack a U.S. ally, falsely claiming that China now controls the Panama Canal — it is in fact managed by an independent agency of the Panamanian government — and appearing to threaten war to seize it back.
Citing the U.S. role in building the canal, Trump reiterated right-wing grievances against the 1978 treaty that resulted in it being transferred from American to Panamanian control, describing it as a "foolish gift that should never have been made." He went on to baselessly assert that Panama had reneged on its end of the bargain and that its "promise to us has been broken."
"The purpose of our deal and the spirit of our treaty has been totally violated," Trump said. "American ships are being severely overcharged and not treated fairly in any way, shape or form, and that includes the United States Navy."
"Above all," he continued, "China is operating the Panama Canal and we didn't give it to China, we gave it to Panama — and we're taking it back."
Trump's false claim and threat of war was greeted with a standing ovation.
Panamanian officials have rebutted Trump's lies about China, noting that while a Hong Kong company won a 1997 bid to operate some ports along the canal it does not control it. Speaking to the Associated Press, Ricaurte Vásquez, head of the agency that manages the canal, noted that other ports are controlled by U.S. and Taiwanese companies; of suggestions the U.S. could take it back, he said only that there is "no foundation for that sort of hope."
While some have dismissed Trump's rhetoric as bluster, or a mere negotiation tactic, others are taking his remarks at face value.
"Trump has just declared war on Panama, a US ally, in an inaugural address," Edward Luce, a columnist for the Financial Times, wrote on Bluesky. "A first."
