President-elect Donald Trump threatened to reassert U.S. control over the Panama Canal on Sunday, accusing Panama of charging excessive rates to use the Central American passage and drawing a sharp rebuke from Panamanian President Jose Raul Mulino.

Speaking to a crowd of supporters in Arizona, Trump also said he would not let the canal fall into the "wrong hands," warning of potential Chinese influence on the passage. After the event, he posted an image on Truth Social of an American flag flying over a narrow body of water, with the comment: "Welcome to the United States Canal!"

"Has anyone ever heard of the Panama Canal?" Trump said at AmericaFest, an annual event organized by Turning Point, an allied conservative group. "Because we're being ripped off at the Panama Canal like we're being ripped off everywhere else."