A woman holds up a banner with a message that reads in Spanish; "Trump persona non grata!", during a demonstration marking Martyrs' Day, a national day of mourning, Panama City, on Thursday, January 9, 2025. (AP)

Republican lawmakers have introduced a bill in the House of Representatives that would allow the US president to negotiate the acquisition of the Panama Canal.

President-elect Donald Trump stirred controversy when he criticized what he described as unfair fees imposed on US ships using the man-made canal, and suggested that Washington might demand control of the vital waterway be restored to the US.

If Panama could not ensure "the secure, efficient and reliable operation" of the channel, "then we will demand that the Panama Canal be returned to us, in full, and without question," he warned.

In response, Panamanian President Jose Raul Mulino firmly dismissed Trump’s remarks on Sunday, stressing that "every square meter of the Panama Canal and its adjacent areas belongs to Panama and will continue belonging to Panama." He also rejected talks with Donald Trump over ownership of the Panama Canal.

US points at China, Panama denies

South Dakota congressman Dusty Johnson's introduced bill aims "To authorize the president to enter into negotiations for the reacquisition of the Panama Canal from the Republic of Panama."

According to Johnson, "President Trump is right to consider repurchasing the Panama Canal, adding that "China’s interest in and presence around the canal is a cause for concern. America must project strength abroad – owning and operating the Panama Canal might be an important step towards a stronger America and a more secure globe."

However, Ricaurte Vasquez Morales, head of the Panama Canal Authority, rejected Trump's claims that China allegedly controls the canal and is increasing tariffs on US ships.

Morales told The Wall Street Journal newspaper on Wednesday, "The accusations that China is running the Canal are unfounded. China has no involvement whatsoever in our operations. Rules are rules, and there are no exceptions. We cannot discriminate against the Chinese, the Americans, or anyone else. This will violate the neutrality treaty and international law, and it will lead to chaos."

The Wall Street Journal stated that the average cost for ships to transit the canal is approximately $750,000, with fees ranging between $300,000 and $1 million.

Morales added, "They [tariffs] apply to all ships from around the world and there are no exceptions."