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.

The U.S. Department of State said on Wednesday American government vessels can now transit the Panama Canal without charge fees.

The Panama Canal Authority put out its own terse statement saying it had “not made any adjustments” to the fees.

Panama President Jose Raul Mulino on Thursday accused the United States government of lying a day earlier when the U.S. State Department claimed that U.S. government vessels would be able to cross the country's namesake canal without paying fees.

The United States Department of State on Wednesday said American government vessels can now transit the Panama Canal without charge fees. The Department said this in a tweet via its X account. “The government of Panama has agreed to no longer charge fees for U.

The Panamanian leader says he was “incredibly surprised” by the statement, as President Trump threatens a U.S. takeover of the strategic waterway.

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.