"American state-owned vessels can now pass through the Panama Canal without fees, which saves the American government millions of dollars per year", writes the American Foreign Ministry in a post on X.
Trump has threatened with a military intervention to regain control over the canal, as he believes that American vessels passing through it are paying "ridiculous" fees, as well as accusations that China has gained influence over the important shipping route.
Panama's President José Raúl Mulino has ruled out negotiating the canal's ownership altogether, emphasizing that it belongs to Panama and denying that China controls the canal in any way.
The US Secretary of State Marco Rubio visited the country on Sunday and hinted that Panama has offered concessions.