The U.S. Department of State said on Wednesday American government vessels can now transit the Panama Canal without charge fees.

Panama denied a claim made by the State Department on Wednesday that the Central American nation had agreed to no longer charge fees for US government ships to transit the country’s famous canal.

As President Donald Trump's second administration continued its swift recasting of the federal government and American foreign policy, the president and his top diplomat issued a stunning proposal, saying the U.S. would "take over" the Gaza Strip, "level the site" and rebuild it.

The Panama Canal Authority said in a statement late on Wednesday that it had not made any changes to charges or rights to cross the canal, after the U.S. State Department said that U.S. government vessels could transit the crossing without being subject to such fees.

The United States Department of State on Wednesday said American government vessels can now transit the Panama Canal without charge fees. The Department said this in a tweet via its X account. “The government of Panama has agreed to no longer charge fees for U.

Panama has denied making changes to allow US government vessels to transit the Panama Canal for free, following White House claims it had agreed to such a move. The State Department said in a statement on X that its government vessels "can now transit the Panama Canal without charge fees,

The Panama Canal Authority on Wednesday denied the U.S. State Department's claim that U.S. government vessels would be able to cross the canal without paying fees, likely ratcheting up tensions after President Donald Trump threatened to take back control of the crossing.