The Panama Canal Authority said in a statement late on Wednesday that it had not made any changes to charges or rights to cross the canal, after the U.S. State Department said that U.S. government vessels could transit the crossing without being subject to such fees.

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

The U.S. State Department on Wednesday announced a new deal with the government of Panama that will eliminate charge fees for U.S. government vessels. "The government of Panama has agreed to no longer charge fees for U.