In a Saturday evening post on Truth Social, Trump also warned he would not let the canal fall into the "wrong hands," and seemed to warn of potential Chinese influence on the passage, writing the canal should not be managed by China.
The post was an exceedingly rare example of a US leader saying he could push a sovereign country to hand over territory.
Donald Trump says the fees being charged by Panama "are ridiculous". (AP PHOTO)
It also underlines an expected shift in US diplomacy under Trump, who has not historically shied away from threatening allies and using bellicose rhetoric when dealing with counterparts.
"A secure Panama Canal is crucial for US Commerce, and rapid deployment of the Navy, from the Atlantic to the Pacific, and drastically cuts shipping times to US ports," Trump wrote in his Truth Social post.
The United States largely built the canal and administrated territory surrounding the passage for decades. But the US government fully handed control of the canal to Panama in 1999 after a period of joint administration.
Donald Trump says the US is being ripped off by exorbitant fees to use the Panama Canal. (AP PHOTO)
"The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the US," Trump said.
"This complete "rip-off" of our Country will immediately stop," he said
"It was not given for the benefit of others, but merely as a token of co-operation with us and Panama.
"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."
The Panamanian embassy in Washington did not immediately respond to a request for comment.Â
