President Trump on Panama Canal: 'We're Taking it Back'

President Trump was sworn back into office in a ceremony in Washington on Monday. File Image / Pixabay

New US President Donald Trump has renewed his hostile remarks towards Panama's government in a speech at his inauguration on Monday.

President Trump raised his concerns over Panama Canal tolls charged to US-flagged ships in a speech after being sworn into office on Monday.

"American ships are being severely overcharged and not treated fairly in any way, shape or form, and that includes the United States Navy," President Trump said in the speech.

"And above all, China is operating the Panama Canal, and we didn't give it to China.

"We gave it to Panama.

"And we're taking it back."

President Trump has raised the issue before in recent weeks. It remains unclear whether his comments represent a military threat to Panama or a negotiating tactic seeking to secure canal toll discounts for US ships.