Key Takeaways:

• The US government announced its vessels can now transit the Panama Canal without any fees.
• This decision follows significant pressure from President Trump and was revealed publicly by Secretary of State Marco Rubio.
• The change is expected to save the US government numerous millions of dollars annually.
• Concerns have been raised regarding Chinese investments in the region and their potential impact on US access to the canal.
• New discussions between the US and Panama are set for Friday to further address concerns.

The United States declared that government vessels will now transit the Panama Canal free of charge, a significant move influenced by President Donald Trump. The State Department announced this development on social media, noting it would save the government millions each year. This concession was disclosed following talks between Marco Rubio, the US Secretary of State, and Panama’s President Jose Raul Mulino, where concerns regarding the fairness of charging the US for transit were discussed. Rubio emphasized that it was unjust to charge the US while it defends the canal, crucial for approximately 40% of US container traffic.

Trump, who previously claimed Panama was charging excessive fees, has hinted at potential military action to secure the canal. He expressed discontent despite acknowledging concessions from Panama in his recent statements. While Panama has denied any Chinese control over the canal, Trump's administration continues to monitor investments from Beijing closely due to strategic interests.

After recent discussions, President Mulino confirmed that Panama would not renew its membership in the Belt and Road Initiative, seeking to appease US concerns about China's involvement. The next round of talks scheduled for Friday aims to strengthen the US-Panama partnership and further assuage worries surrounding the canal's operations. Both Trump and Rubio remain vigilant regarding future developments, especially amid heightened geopolitical tensions.

Additional information available from India Times and Reuters.