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.

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."

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.

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,

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.

Panama President Jose Raul Mulino said on Thursday (Feb 6) the US was spreading "lies and falsehoods" after the State Department claimed US government vessels would be able to pass through the Panama Canal without paying.

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