Panamanian President: Trump's Government Spreads Lies Of US Ships Freely Passing Panamanian Canal

Panamanian President Jose Raul Mulino/PHOTO via Instagram @joseraulmulino

JAKARTA - Panamanian President Jose Raul Mulino said the United States spread "lies and fakes" after the US State Department claimed US government ships would be able to cross the Panama Canal free of charge.

This fiery allegation is the latest point of tension between the two countries that have clashed over the canal since US President Donald Trump claimed the important waterway had been taken over by China.

Speaking to reporters, Mulino stated his "absolute rejection" of the management of US-Panama relations "based on lies and fakes."

Panamanian Canal Authority issued a statement late Wednesday denying US State Department claims that the Panamanian government has agreed to no longer impose crossing fees on US government ships, a move that would save millions of US dollars per year.

Trump accused the Central American nation of imposing excessive tariffs to use its trade route, which is one of the busiest trade routes in the world.

"Why do they make important institutional statements from entities governing US foreign policy, under the President of the United States, based on lies?" Mulino said.

The President of Panama called the US State Department's claim "unmitigated."

Mulino asked his ambassador in Washington to take a "firm step" to reject the Trump administration's claim.