Claiming that China is "operating" the Panama Canal, President Donald Trump in his inaugural address on Monday said that "we're taking it back" as the US has been treated 'unfairly.'

In his inaugural address on January 20, 2025, President Donald Trump declared that the United States would be "taking back" the Panama Canal, a strategic waterway that was handed over to Panama in 1999. Trump accused the Panamanian government of unfairly charging U.S. ships, including Navy vessels, and claimed that China is effectively operating the canal, stating, "we didn't give it to China; we gave it to Panama" .

The US largely built the canal in 1914 and administrated territory surrounding the passage for decades. But Washington fully handed control of the canal to Panama in 1999 after a period of joint administration.

Panamanian President José Raúl Mulino quickly responded to Trump's assertions, emphasizing that the canal is under Panamanian control and will remain so. He rejected the notion that any foreign nation, including China, has interference in its operations. Mulino called for dialogue rather than confrontation to resolve any disputes regarding the canal.

Trump's comments have stirred significant controversy, with many in Panama viewing the canal as a symbol of national pride and economic stability. The canal generated nearly $5 billion in profits in 2024 alone, contributing significantly to Panama's economy. The remarks also raised concerns about potential military action, as Trump had previously hinted at not ruling out such measures if necessary.

ANI