US Secretary of State Marco Rubio has walked back the assertion of the State Department that Panama “has agreed to no longer charge fees” to US government vessels transiting the Panama Canal after outcry from the Panamanian government.

U.S. Secretary of State Marco Rubio admitted his claim that Panama would allow American ships to use its canal for free is not true. On Wednesday, the U.S. Department of State said Panama’s government had “agreed to no longer charge fees for U.S. government vessels to transit the Panama Canal.”

U.S. Secretary of State Marco Rubio has told Panama’s president that the country must reduce Chinese influence over the Panama Canal area or face potential retaliation from the Trump administration.