U.S. President Donald Trump said the United States would take back the Panama Canal, denouncing China’s influence over the vital waterway and the high fees it charges American ships.
In his inauguration speech on Monday, Trump reiterated his criticism of the canal, which handles about 3% of global seaborne trade annually, in recent weeks.
The United States oversaw the construction of the Panama Canal, which opened in 1914, but returned full control to the Central American country in 1999. The company operates the terminals at both ends.
“We didn’t give it to China, we gave it to Panama and we’re taking it back,” Trump said.
The Panamanian government has refuted Trump’s comments and accusations about Chinese influence. President José Raúl Mulino said in December that the canal “is and will always be the Panama Canal and will facilitate global trade”.
China does not control the Panama Canal.
Trump also said that U.S. ships, including warships, were being charged too much in the canal. The canal uses fresh water to operate its locks, and a severe drought in the region has driven up the cost of crossings over the past 18 months after restrictions and changes to channel allocations.
