The Panamanian leader says he was “incredibly surprised” by the statement, as President Trump threatens a U.S. takeover of the strategic waterway.

Navy use of the canal is infrequent, with about 40 vessels transiting annually, excluding the service’s aircraft carriers, which are too large. Allowing free access would reportedly save the U.S. about $13 million each year, according to the WSJ report.

Marco Rubio forced into embarrassing walk back on Panama Canal claim - Marco Rubio claimed Panama had agreed to stop charging US vessels transiting through the canal

No formal deal has been agreed to as President Trump threatens an American takeover of the strategic waterway.

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.

Panama's president says the State Department's claim of an agreement granting U.S. warships free canal passage was "based on a falsity. And that's intolerable."

Panamanian President José Raúl Mulino on Thursday rejected U.S. claims that American warships and boats can transit the Panama Canal without paying a standard fee. In a weekly news conference,

Santo Domingo.- U.S. Secretary of State Marco Rubio called it “absurd” that U.S. Navy ships must pay to cross the Panama Canal after Panamanian President José Raúl Mulino denied an agreement for free passage.

President Donald Trump says China is running the Panama Canal and “we’re gonna take it back, or something very powerful’s going to happen.” Panama then reportedly made the offer to allow U.S.