The U.S. State Department has revealed that Panama will eliminate tariffs for U.S. government ships passing through the Panama Canal. This decision is expected to save the U.S. government millions of dollars each year.
The U.S. State Department announced that American government vessels can now transit the Panama Canal without incurring any fees, potentially saving the U.S. government millions of dollars annually. This decision follows the arrival of U.S. Secretary of State Marco Rubio in Panama on February 1, marking his first visit since assuming the role of the nation's top diplomat.
Following his victory in the U.S. presidential election, President Donald Trump threatened to take control of the canal, alleging that Panama was imposing excessive tariffs on U.S. ships navigating one of the world's busiest waterways. President Trump claimed that the U.S. Navy and businesses have faced unjust and arbitrary treatment, and that Panama's fees are excessively high.
The United States built the massive canal in 1914 and oversaw the nearby area for a long time. However, in 1999, Washington handed over complete control of the canal to Panama after a period of joint management. U.S. Secretary of State Marco Rubio warned Panama about China's influence and control over the Panama Canal.
He found the situation intolerable and declared that the US would intervene if no modifications were made. US Secretary of State Marco Rubio conveyed US President Trump's worries in a discussion with Panamanian President Jose Raul Mulino and Foreign Minister Javier Martinez in Panama City on February 2.