Former White House chief of staff Mick Mulvaney said Monday that President-elect Trump's recent provocations about the possibility of the U.S. regaining control of the Panama Canal are part of a negotiating tactic aimed at lowering interest rates.
But Mulvaney added that Trump has leverage in the negotiation process because he has made “credible” threats.
“This is a negotiation,” Mulvaney said on NewsNation's “The Hill,” regarding President Trump's recent Panama remarks. “This is a negotiation,” Mulvaney said on NewsNation's “The Hill.” It's a real threat,” he added.
“If he said, 'Look, if Panama doesn't lower interest rates, we're going to have a problem with Panama,' you'd know that,” Mulvaney continued. But you have to think someone is scratching their head and wondering, “Is Donald Trump crazy enough to do that?” ”
“And that viable threat is what gives him bargaining power that not many others can conceive of,” Mulvaney said.
On Sunday, President Trump proposed returning the Panama Canal to U.S. control at a conference of supporters, vowing to take swift action on the issue once he takes office in less than a month.
“It's given to Panama and the Panamanian people, but with stipulations. They're supposed to treat us fairly and they're not treating us fairly,” Trump said at Turning Point's “American Fest.” ” he said.
President Trump continued, “If the moral and legal principles of this generous donation are not upheld, we will demand that the Panama Canal be completely, promptly, and without question returned to the United States.'' Dew,” he added.
When members of the audience chanted “take it back,” Trump responded, “That's a good idea.”
President Trump also accused Central American countries of charging exorbitant fees to ships using the canal, which runs between the Pacific and Atlantic oceans.
Panama imposes duties on boats and ships using the canal. Prices vary depending on the size and purpose of the vessel and range from $0.50 to $300,000. The United States transferred control of the canal to Panama in 1999.
“Has anyone ever heard of the Panama Canal?” President Trump told the crowd at “America Fest.” “Because we are being fooled at the Panama Canal just as we are being fooled everywhere else.”
“The fees that Panama is charging are ridiculous and extremely unfair,” Trump said.
Mulvaney said he would like to know how the dynamics would play out if the Panamanian leader “talks his bluff.”
“That's going to happen, and I'm interested in seeing how it plays out because it's going to be kind of difficult and I don't think they're going to just criticize his bluff and say, 'We're going to pay interest rates. Because it's easy to say, 'We're not going to lower the rate,''' Mulvaney said. “And you never know what the next move on the chessboard will be.”
Panama's President Jose Raul Mulino hit back at President Trump's suggestion that the canal be returned to U.S. control.
“As president, I want to make it clear that every square meter of the Panama Canal and its adjacent areas belongs to Panama and will continue to do so,” Mulino said.video statementaccording to the English translation. “Our sovereignty and independence are non-negotiable.”
The Hill is owned by Nexstar Media Group, which also owns NewsNation.
