Following intense pressure from President Donald Trump, the United States announced on Wednesday that its state vessels will then pass through the Panama Canal without cost.
The state division posted a statement on social media platform X on Monday,” US government warships can now transport the Panama Canal without charging fees,” saving the US government millions of dollars annually.
US Secretary of State Marco Rubio revealed that Panama made the offer during their conversations on Sunday, making the announcement the first public assurance of agreements.
Rubio argued that paying transit fees while also acting as a front-runner for the proper waterway was unfair.
Trump hasn’t ruled out military action to secure the river, through which 40 % of US box traffic flows, since winning the election in November.
He and Rubio have also voiced concern about Chinese investments in the area, claiming that Beijing might be able to obstruct US exposure in a turmoil.
Panama, however, has repeatedly denied Trump’s complaints that China has any administrative control over the river.
