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.

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.

Secretary of State Marco Rubio met with Panamanian President José Raúl Mulino in Panama over the weekend, State Department spokesperson Tammy Bruce said in a readout of their meeting.