The United States had claimed Panama agreed to waive fees for US government ships using the Panama Canal. However, Panama has denied any recent agreements or changes related to free transits for US vessels.
The US State Department announced on X that US government ships “can now transit the Panama Canal without charge fees, saving millions of dollars annually.” However, the Panama Canal Authority (ACP) refuted this statement, clarifying that it maintains full authority to determine tolls and charges. The ACP emphasized that no changes to the fee structure had been made.
US President Donald Trump has frequently expressed his desire to regain control of the Panama Canal, calling it vital to global commerce. Stretching 51 miles (82 km), the canal links the Atlantic and Pacific Oceans, making it a crucial trade route.
During his visit to Latin America, Secretary of State Marco Rubio urged Panama to limit China’s influence over the canal. He warned Panama to act swiftly or face potential US intervention to protect treaty-based rights.
While in Panama, Rubio met with President José Raúl Mulino and canal administrator Ricaurte Vásquez Morales. Following their discussions, the ACP reaffirmed its willingness to cooperate with the US Navy to optimize transit priority for American ships. In a Wednesday statement, the ACP reiterated its commitment to maintaining dialogue with US officials.
US vessels represent a significant portion of the canal’s traffic, with 52% of 2024 transits either originating from or destined for US ports, according to canal authorities. Each year, nearly 14,000 ships use the canal, avoiding the long and expensive journey around South America’s southern tip.
President Trump, in his inaugural speech, vowed to “take back” the canal, citing concerns over alleged Chinese control and Panama’s breach of neutrality promises. However, President Mulino firmly rejected these claims, stating that Panama retains full control of the canal. He dismissed allegations of Chinese influence, asserting that no foreign nation interferes with the canal’s administration.
The US originally built the canal in the early 20th century. After decades of Panamanian protests, President Jimmy Carter signed a 1977 treaty to gradually transfer canal control to Panama—a move Trump has criticized as a major mistake.