State Department: U.S. government vessels can now transit the Panama Canal without charge fees

The US State Department on Wednesday announced that Panama has agreed to eliminate fees for US government vessels transiting the Panama Canal.

It further said the decision will save the US government millions of dollars each year.

Sharing a post on X, the US State Department wrote, "US government vessels can now transit the Panama Canal without charge fees, saving the US government millions of dollars a year."

The decision comes after US Secretary of State Marco Rubio arrived in Panama on February 1, marking his first trip since holding the job as US top diplomat.

Notably, after winning the US presidential elections last November, President Donald Trump had threatened to take control of the Canal accusing Panama of charging excessive rates on US ships passing through one of the busiest waterways in the world.