Panama Makes Canal Passage Free for the U.S. After Trump's Threats

The Panamanian authorities have waived the toll fees for American ships passing through the Panama Canal. This decision follows statements from Donald Trump, who threatened to reclaim control over this vital waterway, reports NewsBox.

The Panamanian government decided to eliminate the charges for American vessels using the Panama Canal, according to the U.S. State Department. Now, U.S. government ships can pass through this strategic channel without incurring fees, which will allow Washington to save millions of dollars each year.

This decision came after Donald Trump made pointed remarks, suggesting that U.S. ships were being overcharged for transiting the canal, and asserting a need for American control if the situation did not change. Trump also expressed concerns about China's influence, noting that Hong Kong-based Hutchison Whampoa Ltd. manages freight terminals on both sides of the canal.

Shortly after Trump's inauguration, the new U.S. Secretary of State Marco Rubio visited Panama on an official trip. Following the visit, Panamanian President Raúl Molino announced the country's exit from the Chinese "Belt and Road Initiative," citing U.S. concerns that China's presence near the canal contravened the 1999 treaty under which the canal was transferred to Panama.