Former President Trump's recent comments about the Panama Canal have ignited a diplomatic row with Panama. Trump asserted that the United States "foolishly gave away" the canal and is now being unfairly charged. Panama's President José Raúl Mulino responded forcefully, emphasizing Panama's complete ownership and sovereignty over the canal.

Mulino clarified that the canal's transit fees are determined by experts based on operational costs, supply, and demand, not arbitrary decisions. He highlighted Panama's investments in expanding the canal to accommodate increased ship traffic, with fee increases contributing to these improvements.

Trump's remarks, made on social media, included a provocative image of a U.S. flag planted in the canal zone with the caption, "Welcome to the United States Canal!" This followed earlier posts where he criticized the fees charged to U.S. vessels using the canal, which can reach up to $500,000 for the largest ships.

The United States constructed the Panama Canal in the early 20th century to streamline commercial and military shipping between its coasts. Control of the canal was transferred to Panama on December 31, 1999, following a treaty signed in 1977.

The canal's operation relies on reservoirs and was significantly impacted by the 2023 Central American drought, leading to reduced daily ship crossings and increased fees. While transit levels have returned to normal with improved weather conditions, fee increases are still anticipated for the coming year.