U.S. claims free passage through Panama Canal, authorities deny

US government vessels can now transit the Panama Canal for free, saving millions annually, amid tensions with China.

The United States said Wednesday (February 5, 2025) that its government vessels would sail for free through the Panama Canal following heavy pressure from President Donald Trump, but authorities at the waterway swiftly issued a denial.

“U.S. government vessels can now transit the Panama Canal without charge fees, saving the U.S. government millions of dollars a year,” the State Department said in a post on social media platform X.

It was the first public announcement of promises hinted at by U.S. Secretary of State Marco Rubio, who said that Panama offered concessions during his talks on Sunday (February 3, 2025).

The Panama Canal Authority, the agency that runs the vital link between the Atlantic and Pacific oceans, said no agreement had been reached.

“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.

It said it was still ready to hold a dialogue with U.S. authorities.

Mr. Rubio said he had told Panama that it was unfair for the United States to be in a position to defend the vital waterway and also to be charged for its use.