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 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 Panama Canal Authority late Wednesday said it has made no change to its tolls or other fees, denying the Trump administration claim that it has agreed to no longer charge U.S. government vessels for using it.