• President-elect Donald Trump has threatened to retake control of the Panama Canal.
• Trump blasted the "exorbitant" fees charged to US vessels using the canal.
• Panama's president responded on X, saying that "every square meter" of the canal belongs to Panama.

President-elect Donald Trump has threatened to retake control of the Panama Canal as he hit out at what he called the "exorbitant" fees charged to US ships traversing the passage.

Panama charges tariffs for vessels traveling through the iconic waterway, with fees varying by size and purpose.

"The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the US," Trump said in a post on Truth Social, adding: "This complete 'rip-off' of our Country will immediately stop."

The US transferred control of the canal to the Panama Canal Authority (PCA) in 1999 in accordance with the Torrijos-Carter Treaties.

"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, and without question," Trump continued in a separate post. "To the Officials of Panama, please be guided accordingly!"

Panama President José Raúl Mulino responded in a video statement on X, stating that "every square meter of the Panama Canal and its adjacent zones" belongs to Panama.

The president held up a red book titled "Torrijos Carter Treaty" as he referenced the 1977 agreement that would lead to the dissolution of the Panama Canal Zone and hand over the canal to Panamanians on December 31, 1999.

The roughly 80-kilometer (around 50 miles) canal was officially opened in 1914, offering a new link between the Atlantic and Pacific oceans.

According to the PCA's website, between 13,000 and 14,000 ships use the waterway each year, "connecting 1,920 ports across 170 countries." The United States is the largest user of the canal.

In 2023, a shipping company paid almost $4 million on top of regular fees to get through the Panama Canal following a logjam, Bloomberg reported.

Japan's Eneos Group paid $3.98 million in an auction to jump the queue after a drought caused congestion, the report said.