The United States announced on Wednesday that its government vessels would now transit the Panama Canal without paying fees, following strong pressure from President Donald Trump. However, the Panama Canal Authority swiftly denied any such agreement.
“US government vessels can now transit the Panama Canal without charge fees, saving the US government millions of dollars a year,” the US State Department stated in a post on X.
The announcement marked the first public confirmation of concessions hinted at by US Secretary of State Marco Rubio, who claimed that Panama had agreed to adjustments following diplomatic talks on Sunday.
Panama Canal Authority Denies Any Deal
Shortly after the US statement, the Panama Canal Authority (ACP), which manages the vital waterway connecting the Atlantic and Pacific oceans, issued a strong rebuttal.
“The Panama Canal Authority, which is empowered to set tolls and other fees for transiting the canal, reports that it has not made any adjustments to them,” the agency said in a statement, adding that it remained open to discussions with US officials.
The dispute highlights ongoing tensions as Trump pushes for US interests in the region, citing national security concerns and China’s growing influence.
Trump Pressures Panama, Raises Military Threats
The announcement comes as Trump and Rubio continue to pressure Panama over the canal’s operations and alleged Chinese influence. The US and Panama are scheduled to hold further talks on Friday.
Trump, since his election victory in November, has refused to rule out the use of force to seize the canal, which handles 40% of US container traffic. He and Rubio have repeatedly raised concerns about Chinese investments in Panama, including port operations on both sides of the canal, warning that Beijing could block US access in a future crisis.
Panama has rejected Trump’s claims that China plays a role in operating the canal. However, in a move that could ease tensions, President Jose Raul Mulino announced after meeting Rubio that Panama would withdraw from China’s Belt and Road Initiative, Beijing’s global infrastructure project.
Mulino has also ordered an audit of Panama Ports Company, a subsidiary of Hong Kong-based CK Hutchison Holdings, which operates the country’s two major ports. The company’s 25-year concession, extended in 2021, has drawn increasing scrutiny in Washington amid concerns over China’s tightening control of Hong Kong.
Uncertain Future for US-Panama Relations
Despite Mulino’s efforts to address US concerns, Trump has expressed dissatisfaction. “I’m still not happy,” he said, while acknowledging that Panama had “agreed to certain things.”
Trump has previously suggested that the US should “take back” the canal, built by Washington over a century ago and handed over to Panama in 1999. The ongoing tensions set the stage for critical negotiations in the coming days, with global trade and US-Panama relations hanging in the balance.
