The Panama Canal Authority said there had been no changes made to the fees it imposes on vessels sailing through the canal, despite a statement by the US State Department, which said a deal struck with Panama would save it millions of dollars a year.

Summary

The Panama Canal Authority denied U.S. claims that American government vessels can transit the canal for free, contradicting a State Department announcement.

The dispute follows Trump’s pressure on Panama to grant concessions, citing U.S. defense of the waterway and concerns over Chinese investments.

While Panama rejected Trump’s allegations of Chinese control, it withdrew from China’s Belt and Road Initiative.

Trump has hinted at possible military action to seize the canal, and further U.S.-Panama talks are scheduled amid ongoing tensions over control and access.