The US State Dept on Feb 5 claimed that Panama has agreed to eliminate fees for US govt vessels transiting the Panama Canal. It further said the decision would save the United States Government millions of dollars each year. Reacting to the decision, Panama President Jose Raul Mulino said the United States was spreading "lies and falsehoods". The fiery allegations are the latest point of tension between two countries which have clashed over the canal since Trump’s takeover. Earlier, The US State Dept shared a post on X, claiming ‘US Govt vessels can now transit the Panama Canal for free’. However, the Panama Canal Authority said on Wednesday that it had not made any changes to charges or rights to cross the Canal. Panama is “Willing to establish a dialogue with relevant US officials regarding the transit of wartime vessels”.