Panama Left Out of New U.S. Tariffs: What It Means

On July 24, 2026, a new round of tariffs imposed by the United States on about 60 trading partners took effect, with rates ranging from 10% to 12.5% depending on the country and product type. Panama was left off that list.

The Office of the United States Trade Representative (USTR) did not include the country among the affected economies, meaning Panamanian exports keep their preferential access to the U.S. market, in most cases with zero tariffs.

For anyone living, investing, or doing business in Panama, this news carries implications beyond foreign trade: it's one more signal of the country's strategic standing with the United States, its top trading partner.

What exactly changed

The new round of tariffs, announced by the USTR, sets a 10% rate for countries like Canada, Mexico, the European Union, Taiwan, and the United Kingdom, and 12.5% for China, Japan, India, and more than 40 other economies. Panama doesn't appear in either category.

That means, as of July 24, Panamanian exports to the United States continue to operate under the terms of the Trade Promotion Agreement (TPA) in effect between both countries since 2012, under which more than 97% of Panamanian products already entered duty-free.

Panama's Minister of Commerce and Industries, Julio Moltó, called the exclusion positive news for the country.

Why Panama was left off the list

While the USTR didn't detail country-specific criteria, the context points to Panama's trade and strategic relationship with the United States: a free trade agreement in place for over a decade, the Panama Canal's role in hemispheric trade, and a recent increase in transits through the interoceanic route.

In a moment when dozens of countries face new tariff barriers, keeping Panama off that list reinforces the bilateral relationship and avoids friction with a key regional trading partner.

What this means for investors and expats

Beyond the headline, this exclusion has a direct effect on how the country's economic stability is perceived.

For foreign investors, a predictable trade environment with preferential access to the U.S. market is one of the factors that weighs most heavily when deciding where to set up a business or buy property.

Panama already benefits from a dollarized economy, an established international banking system, and a unique geographic location; staying exempt from this new tariff round adds one more argument in favor of the country's stability compared to other investment destinations in the region.

For Panamanian exporting companies, the news means continuity: no added costs to absorb, no need to adjust prices against competitors from countries that did get hit with the new tariffs, which improves Panama's competitive position in sectors like agribusiness, manufacturing, and trade-related logistics services.

Panama keeps building on its strategic role

This news adds to other recent signals about Panama's relevance in international trade, from growing Canal transits to new international air routes.

For anyone weighing a move, an investment, or doing business in the country, these are pieces of the same picture: a Panama that keeps reinforcing its position as a commercial and logistics bridge for the Americas.

Keep exploring Panama with us

At Reside Panama, we keep a close eye on the economic and trade news that shapes life for anyone living, investing, or planning to move here.

If you want to learn more about Panama's investment climate and lifestyle, don't miss our guides to Panama City and other communities across the country.