Panama President Denounces U.S. Claims on Canal Fees as “Lies and Falsehoods”

PANAMA CITY – Panama’s President Jose Raul Mulino sharply criticized the United States on Thursday, rejecting claims from the U.S. State Department that American government vessels would be able to pass through the Panama Canal without paying fees.

The dispute adds to growing tensions between the two nations, especially after U.S. President Donald Trump alleged that China had gained control of the canal and vowed that the U.S. would reclaim influence over the strategic waterway.

Speaking to reporters, Mulino condemned what he called “lies and falsehoods” in U.S.-Panama relations. His remarks followed a statement from the Panama Canal Authority (ACP) denying the U.S. claim that Panama had agreed to waive transit fees for American government ships—a move that would have saved the U.S. millions of dollars annually.

Trump has previously criticized Panama for imposing excessive tolls on U.S. vessels using the canal, one of the world’s most critical maritime trade routes.

“Why is an official entity governing U.S. foreign policy making such an important statement based on a falsehood?” Mulino asked, calling the claim “simply and plainly intolerable.”

The Panamanian government has instructed its ambassador in Washington to take “firm steps” to refute the Trump administration’s assertion, reinforcing its stance that Panama remains fully in control of its canal operations.