The Panama Canal Authority on Wednesday denied the U.S. State Department's claim that U.S. government vessels would be able to cross the canal without paying fees, likely ratcheting up tensions after President Donald Trump threatened to take back control of the crossing.

The US said Wednesday that its government vessels would sail for free through the Panama Canal, but authorities at the waterway swiftly issued a denial. | TAG24

"If the principles, both moral and legal, of this magnanimous gesture of giving are not followed, then we will demand that the Panama Canal be returned to us, in full, and without

The Panama Canal Authority late Wednesday said it has made no change to its tolls or other fees, denying the Trump administration claim that it has agreed to no longer charge U.S. government vessels for using it.

Panama has denied making changes to allow US government vessels to transit the Panama Canal for free, following White House claims it had agreed to such a move. The State Department said in a statement on X that its government vessels "can now transit the Panama Canal without charge fees,

No formal deal has been agreed to as President Trump threatens an American takeover of the strategic waterway.

The U.S. State Department on Wednesday announced a new deal with the government of Panama that will eliminate charge fees for U.S. government vessels. "The government of Panama has agreed to no longer charge fees for U.