U.S. Secretary of State Marco Rubio admitted his claim that Panama would allow American ships to use its canal for free is not true.
On Wednesday, the U.S. Department of State said Panama’s government had “agreed to no longer charge fees for U.S. government vessels to transit the Panama Canal.”
But Panama president José Raúl Mulino quickly accused Rubio of spreading “lies and falsehoods” and said his claim was "simply and plainly intolerable."
On Friday, Rubio rolled back on the claim and said Washington only had “expectations” the Central American country would stop charging the U.S. to use the canal.
"Those are our expectations. They were clear. They were clearly understood in those conversations," he said.
“I find it absurd that we would have to pay fees to transit a zone that we are obliged to protect in a time of conflict.”
The 51-mile-long (82km) canal was built by the United States in the early 1900s and links the Atlantic and Pacific oceans through Panama.
It was handed over to Panama in the 1990s following treaties signed between the two countries in the late 1970s.
All vessels are required to pay a fee, based on size and type, for crossing the waterway but U.S ships have priority of passage.
Mulino said US government vessels, including navy vessels, paid "$6-7m [£4.8-5.6m] a year" for the right of passage.
"It's not as if the canal toll is breaking the economy of the United States," he added during his angry outburst.
The Panama Canal Authority, which oversees the route, also said it had "not made any adjustment" to tolls, adding that it was open to establishing a dialogue.
Last year, Trump accused Panama of “ripping off” the U.S. in a series of posts on Truth Social.
In a series of posts on Truth Social, the president-elect accused the country of “ripping off” the US.
“Our Navy and Commerce have been treated in a very unfair and injudicious way,” Trump wrote.
“The fees being charged by Panama are ridiculous, especially knowing the extraordinary generosity that has been bestowed to Panama by the US.”
Trump’s administration has also expressed fears that China could close the canal to the U.S. in the event of a crisis - something Panama and China have strongly denied.
China's Foreign Affairs spokesperson Lin Jian said its partnership with Panama was yielding "fruitful results" and urged the country to "resist external interferences."
