Panama Canal Standoff: U.S. Claims and Denials Escalate

The Panama Canal Authority denied the U.S. claim that its vessels could cross without fees, raising tensions with President Trump threatening to retake control. Trump criticized Panama for high charges and alleged Chinese control, while Panama stood firm on its sovereignty over the canal.

Tensions have risen between the United States and Panama after the Panama Canal Authority refuted U.S. claims about exemption from crossing fees. President Trump had previously threatened to reclaim control of the canal, arguing that Panama charges excessive fees for passage.

The U.S. assertion that it could save millions annually by avoiding fees was met with a strong reply from the Panama Canal Authority, which reiterated its stance on maintaining current fee structures. U.S. Secretary of State Marco Rubio's recent meeting with Panamanian officials underscored the negotiating complexities.

President Trump has accused Panama of yielding control to China, a charge denied by both Panamanian and Chinese authorities. Despite threats, Panama remains committed to its management of the canal, which was transferred to Panama in 1999 after decades of U.S. administration.