The United States Department of State announced that Panama agreed to no longer charge fees for US government vessels going through the Panama Canal.
"This saves the US government millions of dollars a year," the State Department added. US President Donald Trump accused Panama of overcharging practices and warned that the US would retake control of the passage, repeatedly claiming that "China is running the Panama Canal." White House Press Secretary Karoline Leavitt stressed on Wednesday that Trump made it clear that the US "cannot and will not" allow China to "continue with its effective and growing control over the Panama Canal."
Panamanian President Jose Raul Mulino previously announced that his country will not renew its Belt and Road Initiative (BRI) agreement with China, following a meeting with US Secretary of State Marco Rubio.