The Panama Canal Authority (ACP) has refuted claims made by the US State Department that American government vessels can now transit the canal toll-free, allegedly saving the US millions of dollars annually. The ACP asserted that it retains sole authority to set tolls and has made no such adjustments. 

Tensions escalated as Secretary of State Marco Rubio urged Panama to limit China's influence over the vital trade route, warning that the US may take measures to protect its rights under a treaty. While the ACP committed to cooperating with the US Navy to prioritize transit, Panamanian President José Raúl Mulino dismissed claims of Chinese interference and reaffirmed Panama’s control over the canal. 

The canal, a critical 51-mile link between the Atlantic and Pacific Oceans, has seen over half its traffic tied to US ports. President Donald Trump has demanded "taking back" the canal amid concerns over China’s involvement. 

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