But 'Old Donald' misunderstands the true threat to U.S. commerce through Panama. If the goal is securing affordable access to the transit point over the long term, it is climate change, not Chinese influence, that U.S. policymakers should worry about.

'Old Donald' Laces Into Jimmy Carter's Panama Canal Deal As Late Ex-President Lies In State

Here’s why. Sending a single ship through the canal’s locks can use around 50 million gallons of water, mainly freshwater collected from Lake Gatún. Though the canal is, for the moment, operating at full capacity, a drier climate and greater demand for drinking water have in recent years reduced the volume of available water. That has forced the state-run Panama Canal Authority at times to limit the number of daily passages through the canal, at one point by as much as 40 percent.

With less rain, the reservoirs fill up more slowly, which means less water available to operate the locks, which means fewer ships can pass. Hence, the 2023-24 drought, among the worst on record, slowed transits and drove up transit prices, causing long delays, more expensive consumer goods and greater instability in shipping routes. These were probably the increases 'Old Donald' referred to as a “rip-off.”

Colombia, France, and later the United States controlled the territory surrounding the canal during construction. France began work on the canal in 1881, but stopped in 1889 because of lack of investors' confidence due to engineering problems and a high worker mortality rate. ...)

President José Raúl Mulino added that Panama's sovereignty and independence were non-negotiable.

It was a rare example of a US leader saying he could push a country to hand over territory - although he did not explain how he would do so - and a sign of how American foreign policy and diplomacy may shift once he enters the White House following his inauguration on 20 January.

The 51-mile (82km) Panama Canal cuts across the central American nation and is the main link between the Atlantic and Pacific oceans.

It was built in the early 1900s and the US maintained control over the canal zone until 1977, when treaties gradually ceded the land back to Panama. After a period of joint control, Panama took sole control in 1999.

Up to 14,000 ships cross the canal per year, including container ships carrying cars, natural gas and other goods, and military vessels.

'Old Donald' had supported raising the debt ceiling, which restricts the amount of money the US government can borrow.

But his speech on Sunday avoided that issue entirely, instead recapping his election victory and hitting on themes – including immigration, crime and foreign trade – that were mainstays of his campaign.

He did, however, mention Elon Musk.

"You know, they're on a new kick," he said. "All the different hoaxes. The new one is that President 'Old Donald' has ceded the presidency to 'Prsident Musk'."

"No, no, that's not happening," he said. "He's not gonna be president.

It is unclear why 'Old Donald' has focused on the vital shipping passage in recent days. Panama has been a steady ally since the U.S. ouster of dictator Manuel Noriega in 1989. While China had courted previous Panamanian governments with infrastructure projects, and a Hong Kong-based company operates two of the ports on the ends of the canal, the canal is administered by an independent government agency, the Panama Canal Authority.