On Wednesday the United States government announced that Panama had agreed not to charge U.S. vessels for transit through the Panama Canal, a policy officials say will save millions of dollars annually. The announcement followed a visit by U.S. Secretary of State Marco Rubio to the Central American nation, a trip that occurred amid pressure from President Donald Trump to reclaim influence over the strategic waterway. The canal remains one of the world’s most important routes for commerce and for military movement, and the gesture is seen as reinforcing long standing ties between Washington and Panama while shaping regional perceptions of power. The move was described by Washington as a practical step to streamline maritime traffic and support predictable passage for ships from many nations. It underscores a bilateral relationship that has long linked U.S. security assurances to Panama’s management of the canal and its neutrality.
According to the U.S. State Department, the decision was announced in a public post on the social network X. Soon after, the Pentagon issued a statement in which Defense Secretary Pete Hegseth stressed that ensuring unrestricted access to the canal is a priority for national security and a core element of U.S. strategy in the Western Hemisphere. The message emphasized that protecting the canal from external interference is essential to maintaining free and reliable transit for maritime traffic. These remarks signal a continued alignment between the two countries on the canal’s importance for trade, regional stability, and security collaboration across agencies. The statements reflect a broader willingness to coordinate policy approaches as global dynamics shift.
The call took place on Tuesday, and in it Hegseth and Panama’s Public Security Minister Frank Ábrego reaffirmed the commitment of both nations to defend the canal and to expand cooperation between the United States armed forces and Panamanian security services. The dialogue occurred amid tensions following President Trump’s stated aim to reclaim control of the canal because of concerns about Chinese influence in the region. In response, Panama decided not to renew a cooperation agreement with China tied to the Belt and Road Initiative, signaling a recalibration of relationships and a continued emphasis on neutral, rules based transit. Analysts noted that Panama seeks to balance strategic pressure with its sovereign duty to keep the canal open and accessible to all users. The exchange highlighted the delicate diplomacy required to sustain the canal’s nonpartisan management while signaling that regional partners are attentive to evolving power dynamics. The outcome appears to favor a steady framework for security, commerce, and maritime safety.
The Panama Canal Authority, which operates independently of the national government, had already told Rubio on the prior Sunday that it would work with the U.S. Navy to optimize priority for transit of American ships through the canal, though details were not disclosed. In a formal statement the authority described its readiness to coordinate with U.S. naval forces to streamline passage while maintaining equal treatment for all users and preserving the canal’s neutral operating framework. Observers noted that such cooperation could raise questions about how lanes are allocated during busy periods and how the canal balances commercial demand with military movements. Yet officials argued that this approach would enhance predictability for U.S. operations and align with long standing security commitments that accompany canal management. Ricaurte Vásquez, the administrator, was referenced in discussions during Rubio’s visit as the canal’s leadership continues to advance modernization while keeping openness and transparency at the core of governance.
Trump’s rhetoric centers on allegations of Chinese involvement in canal governance and what he calls unfair treatment of U.S. vessels, even as official data from Panamanian authorities indicate that American ships pay the same transit tariffs as other flag states under the neutrality treaty. Critics worry that such rhetoric could destabilize regional cooperation and complicate existing security arrangements. Supporters contend that the canal remains a strategic asset that requires vigilance against external influence. The neutral framework governing charges and access continues to guide the flow of traffic through the waterway, ensuring that no single nation can exert undue leverage over its operation.
Data provided to the EFE news agency by the Canal de Panamá show that from 1998 through the end of fiscal year 2024 a total of 373,039 ships transited the canal. Of that total, 994 were U.S. warships or submarines, representing about 0.3 percent of all transits. The high volume of commercial traffic demonstrates that the canal is primarily a route for global trade, while military movements constitute a small but persistent element of its use. Analysts note that the canal remains a key strategic asset for both the United States and its regional partners, and its governance continues to balance neutrality, transparency, and security obligations. The data emphasize that the canal supports economic activity across the Americas and serves as a cornerstone of regional security arrangements in an era of shifting geopolitical dynamics.