Panama Canal Authority disputes Trump admin claim on removal of boat fees
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Secretary of State Marco Rubio (left) with Panama Canal Authority administrator Ricaurte Vasquez during a tour at the Miraflores locks of the Panama Canal in Panama City on Feb. 2. Photo: Mark Schiefelbein/Pool/AFP via Getty Images
In a rebuke of the Trump administration, Panama has refuted a claim by the U.S. State Department that American vessels can now transit the Panama Canal without being charged fees.
Why it matters: The dispute comes shortly after the State Department made the announcement Wednesday evening. President Trump has pushed to regain control of the canal — one of the world's most significant pieces of infrastructure.
The latest: "In response to a publication released by the United States Department of State, the Panama Canal Authority, which is authorized to set tolls and other fees for transiting the Canal, reports that it has not made any adjustments to them," the authority said in a statement posted to its X account.
Catch up quick: Trump demanded ahead of taking office that Panamanian authorities either lower fees for U.S. ships to transit the Panama Canal or return its control to the U.S.
- The State Department said on X that the now-disputed agreement to allow passage without fees saves the U.S. government millions of dollars a year, per a post on X.
- Representatives for the State Department and Panama's presidential office did not immediately respond to Axios' requests for comment on further details of the deal.
Meanwhile, Defense Secretary Pete Hegseth in a phone call with Panamanian President José Raúl Mulino discussed the U.S. and Panama's shared security interests, per a readout from Pentagon spokesperson John Ullyot.
- The pair "agreed to expand cooperation between the U.S. military and Panama's security forces," Ullyot said.
- "They also highlighted the extensive and expanding cooperation between the United States, including the Department of Defense, and the Panama Canal Authority."
State of play: During a visit to Panama on Sunday, Secretary of State Marco Rubio told Panamanian officials including Mulino that Trump had made a preliminary determination that the current Chinese influence over the Panama Canal area was a threat to the artificially made waterway.
- Mulino had previously called claims of Chinese interference in the canal "nonsense," but he told reporters after meeting with Rubio that the government would conduct an audit of Beijing-operated ports on both sides of the canal and present the findings to the U.S.
- He also emphasized that Panama would not give up the control over the canal.
Flashback: Then-President Jimmy Carter signed treaties with Panama's leader in 1977 for the U.S. to gradually cede control of the canal, which connects the Atlantic and Pacific oceans.
- Panama took over control of the waterway on Dec. 31, 1999.
Go deeper: Trump's talk of retaking Panama Canal becomes a GOP bill
Editor's note: This article has been updated to reflect the Panama Canal Authority disputes the State Department claim, and with additional context.
