Conservative President José Raúl Mulino wanted to work with Trump from day one. He’s now trying to stop a U.S. takeover of the Panama Canal.

Panama's president says the State Department's claim of an agreement granting U.S. warships free canal passage was "based on a falsity. And that's intolerable."

PANAMA CITY — President José Raúl Mulino on Thursday denied a claim by the Trump administration that the Central American country had agreed to eliminate tolls for U.S. government ships using the Panama Canal, in an apparent setback to U.S. diplomatic efforts.

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

Panama's foreign office will share details on the new date once it has been coordinated, the government said. Mulino has accused the U.S. of spreading "lies and falsehoods" after its government claimed its vessels would be able to pass through the Panama Canal without paying.

Panama President José Raúl Mulino has accused the US of spreading "lies and falsehoods" after the US State Department claimed American government vessels were no longer required to pay a fee to transit through the Panama Canal.