Washington had suggested Panama had agreed to no longer charge fees for US government vessels using the waterway.

Summary

The Panama Canal Authority (ACP) denied U.S. claims that its government vessels could transit the canal for free, contradicting a State Department statement that the change would save millions.

The dispute comes as Trump pushes to “take back” the canal, citing concerns over Chinese influence. Panama’s President José Raúl Mulino rejected Trump’s claims, insisting the canal remains under Panama’s control.

While the ACP agreed to discuss prioritizing U.S. naval vessels, it emphasized it has not altered its toll policies or made special concessions.