The United States said on Wednesday that its government vessels would be allowed to sail for free through the Panama Canal, following heavy pressure from President Donald Trump.

"US government vessels can now transit the Panama Canal without charge fees, saving the US government millions of dollars a year," the State Department said in a post on social media platform X.

It was the first public announcement of promises hinted at by US Secretary of State Marco Rubio, who said that Panama offered concessions during his talks on Sunday.

Rubio said he had told Panama that it was unfair for the United States to be in a position to defend the vital waterway and also to be charged for its use.

The US and Panama are scheduled to hold new talks on Friday to discuss the canal.

Panama has became a focal point of the Trump administration as President Donald Trump has accused the Central American country of charging excessive rates to use its passage. (AFP/Reuters)