Trump threatens to take back Panama Canal, wants U.S. to own Greenland

President-elect Donald Trump has threatened to retake control of the Panama Canal unless Panamanian authorities lowered fees for American ships traveling through the waterway, and has even indicated that the U.S. should have ownership of Greenland.

“This complete ‘rip-off’ of our country will immediately stop. The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the U.S.,” Trump said on Truth Social, referring to the U.S. ceding control of the waterway in 1999 under a 1977 treaty signed by President Jimmy Carter.

“If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full,” Trump insisted.

“Every square meter of the Panama Canal and the surrounding area belongs to Panama and will continue to be so,” Panama’s President Jose Raúl Mulino said in response.

Trump responded: “We’ll see about that!”

About 2.5% of global seaborne trade sails through the Panama Canal. According to the International Trade Administration, around 72% of ships transiting the waterway are either going to or coming from U.S. ports.

Separately, Trump named PayPal (PYPL) co-founder Ken Howery as U.S. ambassador to Denmark. “For purposes of national security and freedom throughout the world, the U.S. feels that the ownership and control of Greenland is an absolute necessity,” said Trump. “Ken will do a wonderful job in representing the interests of the U.S.”

The president-elect previously proposed taking over Greenland in 2019, which Denmark Prime Minister Mette Frederiksen said was “absurd.” The Danish government has not responded to Trump’s latest statements.

Notably, Howery served as U.S. ambassador to Sweden during Trump’s first term and is the third PayPal co-founder named by Trump to join his team after David Sacks and Elon Musk.