# Panama: Tariffs, Trade & U.S. Exposure

Panama: America imported $659M in goods from Panama in 2025 (+19.3% in one year) and sold it $8.9B; the latest U.S. tariff action toward it (2026-04-06) is "Section 232 metals coverage expanded", in effect; it ships 8 essential goods finished to American shelves (as of 2026-11-04).

- Canonical: https://policyrisk.com/countries/pa
- As of: 2026-11-04
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Country code: PA
- Region: Central America N Caribbean
- Capital: Panama City
- Government: presidential republic
- Population: 5M
- GDP: $86.3B
- U.S. imports from Panama, 2025: $659M
- Change in imports in one year: +19.3%
- U.S. imports 2026 through August: $743M
- U.S. exports to Panama, 2025: $8.9B
- Trade data source: U.S. Census Bureau, International Trade in Goods (customs basis)
- Tariff treatment: universal baseline, no country-specific action
- Reciprocal tariff (universal baseline): 10%
- Section 301: no
- Tariff status verified: 2026-06-13
- Latest tariff action: 2026-04-06: Section 232 metals coverage expanded (in effect)
- Essential goods shipped finished to the U.S.: 8
- Supply-map inputs and goods: 2 inputs feeding 2 essential American goods
- Coverage: data

## What you buy that Panama makes: U.S. imports, 2025

| Category | What it is | Value | Share |
| --- | --- | --- | --- |
| U.s. goods returned, and reimports |   | $205M | 31% |
| Nonmonetary gold |   | $140M | 21.3% |
| Fish and shellfish | fish, shrimp, shellfish | $81M | 12.4% |
| Electric apparatus |   | $30M | 4.5% |
| Cane and beet sugar | cane and beet sugar | $29M | 4.4% |
| Generators, accessories |   | $24M | 3.7% |
| Fruits, frozen juices | fruit and frozen juices | $21M | 3.3% |
| Cell phones and other household goods, n.e.c. | cell phones and home electronics | $11M | 1.7% |
| Minimum value shipments |   | $10M | 1.5% |
| Copper | copper for wiring | $10M | 1.4% |

2026 so far (through August): $743M in imports. Source: U.S. Census Bureau, International Trade in Goods (customs basis).

## What America sells to Panama: U.S. exports, 2025

| Category | What it is | Value | Share |
| --- | --- | --- | --- |
| Fuel oil |   | $1.8B | 20.6% |
| Petroleum products, other |   | $1.5B | 17.1% |
| Civilian aircraft, engines, equipment, and parts |   | $1.0B | 11.4% |
| Crude oil |   | $505M | 5.7% |
| Pharmaceutical preparations | medicines and pharmacy items | $379M | 4.2% |
| Minimum value shipments |   | $333M | 3.7% |
| Toiletries and cosmetics | toiletries and cosmetics | $218M | 2.4% |
| Gas-natural |   | $198M | 2.2% |
| Other foods |   | $145M | 1.6% |

## U.S. tariff posture toward Panama

No U.S. tariff action singles this country out. Its goods face the universal 10% temporary import surcharge under Section 122 of the Trade Act (which replaced the IEEPA reciprocal baseline in February 2026) plus the sectoral Section 232 duties — steel and aluminum at 50% — that apply to all countries. The Section 122 surcharge is statutorily temporary — scheduled to lapse on or about July 23, 2026 (a 150-day cap) unless extended or replaced.

- Reciprocal tariff (universal baseline): 10%. The universal 10% floor, a Section 122 import surcharge since February 2026, previously the EO 14257 reciprocal baseline, applies to nearly all U.S. imports; this country has no higher assigned rate of its own.

## Tariff status, 6 changes since 2025

- 2026-04-06: Section 232 metals coverage expanded (in effect). The April 2026 proclamation strengthening Section 232 actions on aluminum, steel, and copper expanded derivative-product coverage for all countries, keeping the general metals rate at 50%. [91 FR 18201](https://policyrisk.com/federal-register/2026-06960)
- 2026-02-24: IEEPA reciprocal tariffs terminated — replaced by 10% Section 122 surcharge (in effect, 10%). Executive Order 14389 (Ending Certain Tariff Actions) terminated the IEEPA tariff duties — including the EO 14257 reciprocal baseline — effective February 24, 2026. A flat 10% Section 122 temporary import surcharge (Proclamation 11012 of February 20, 2026) replaced them, leaving the universal rate unchanged at 10% on a different statutory basis. Section 122 caps such surcharges at 150 days, so this 10% surcharge is scheduled to lapse on or about July 23, 2026 absent further action (the administration has signaled it could raise the rate toward the 15% statutory maximum). [91 FR 9437](https://policyrisk.com/federal-register/2026-03832)
- 2025-11-13: Agricultural products exempted from reciprocal tariffs (in effect). Executive Order 14360 of November 14, 2025 removed reciprocal duties from certain agricultural products listed in its annexes (coffee, cocoa, bananas, and other goods the U.S. does not produce in sufficient quantity), retroactive to November 13, 2025 — for all countries subject to the reciprocal tariff. [90 FR 54091](https://policyrisk.com/federal-register/2025-21203)
- 2025-06-04: Section 232 steel and aluminum duties doubled to 50% (in effect). The June 3, 2025 proclamation raised Section 232 duties on steel and aluminum articles and derivatives from 25% to 50% for all countries, effective June 4, 2025. [90 FR 24199](https://policyrisk.com/federal-register/2025-10524)
- 2025-04-05: Universal 10% reciprocal baseline takes effect (in effect, 10%). Executive Order 14257 (signed April 2, 2025) imposed a 10% ad valorem reciprocal duty on imports from all trading partners, effective April 5, 2025. Countries without a higher Annex I rate remain at this baseline. [Federal Register 2025-06063](https://policyrisk.com/federal-register/2025-06063)
- 2025-03-12: Section 232 steel and aluminum duties set at 25% for all countries (in effect). Proclamations of February 10, 2025 terminated all country exemptions and quota arrangements and applied 25% Section 232 duties to steel and aluminum imports from every country, effective March 12, 2025. [90 FR 9817](https://policyrisk.com/federal-register/2025-02833)

## What Panama makes for America

- [Seafood and fish](https://policyrisk.com/supplymap/seafood-and-fish) (food): $81M to the U.S.
- [Sugar](https://policyrisk.com/supplymap/sugar) (food): $29M to the U.S., 2% of U.S. imports of it
- [Copper and electrical wiring](https://policyrisk.com/supplymap/copper-and-wiring) (materials): $29M to the U.S.
- [Fresh produce staples](https://policyrisk.com/supplymap/fresh-produce-staples) (grocery): $24M to the U.S.
- [Smartphones and tablets](https://policyrisk.com/supplymap/smartphones-and-tablets) (digital): $10M to the U.S.
- [Jewelry](https://policyrisk.com/supplymap/jewelry) (materials): $6M to the U.S.
- [Coffee](https://policyrisk.com/supplymap/coffee) (food): $6M to the U.S.
- [Beer, wine, and spirits](https://policyrisk.com/supplymap/beer-wine-spirits) (food): $6M to the U.S.

## The supply chain view

Panama sits upstream of 2 essential American goods through 2 tracked inputs.

- [Copper scrap (secondary copper)](https://policyrisk.com/supplymap/input/copper-scrap-secondary) (manufactured): 1% share
- [Banana supply chain (plantation, sea transport, ripening)](https://policyrisk.com/supplymap/input/banana-supply-chain-inputs) (agricultural): 1% share

## The country itself

Explored and settled by the Spanish in the 16th century, Panama broke with Spain in 1821 and joined a union of Colombia, Ecuador, and Venezuela that was named the Republic of Gran Colombia. When the union dissolved in 1830, Panama remained part of Colombia. With US backing, Panama seceded from Colombia in 1903 and promptly signed a treaty with the US allowing for the construction of a canal and US sovereignty over a strip of land known as the Panama Canal Zone on either side of the structure. The US Army Corps of Engineers built the Panama Canal between 1904 and 1914. In 1977, an agreement was signed for the complete transfer of the Canal from the US to Panama by the end of the century. Certain portions of the Zone and increasing responsibility over the Canal were turned over in the subsequent decades. With US help, Panamanian dictator Manuel NORIEGA was deposed in 1989. The entire Panama Canal, the area supporting the Canal, and remaining US military bases were transferred to Panama by the end of 1999. An ambitious expansion project to more than double the Canal's capacity by allowing for more Canal transits and larger ships was carried out between 2007 and 2016.

Geography
- Location: Central America, bordering both the Caribbean Sea and the North Pacific Ocean, between Colombia and Costa Rica
- Area: 75,420 sq km
- Climate: tropical maritime; hot, humid, cloudy; prolonged rainy season (May to January), short dry season (January to May)
- Terrain: interior mostly steep, rugged mountains with dissected, upland plains; coastal plains with rolling hills
- Natural resources: copper, mahogany forests, shrimp, hydropower
- Coastline: 2,490 km
- Natural hazards: occasional severe storms and forest fires in the Darien area

People and society
- Population: 4,536,008 (2025 est.)
- Nationality: Panamanian(s)
- Ethnic groups: Mestizo (mixed Indigenous and White) 65%, Indigenous 12.3% (Ngabe 7.6%, Kuna 2.4%, Embera 0.9%, Bugle 0.8%, other 0.4%, unspecified 0.2%), Black or African descent 9.2%, Mulatto 6.8%, White 6.7% (2010 est.)
- Languages: Spanish (official), Indigenous languages (including Ngabere (Guaymi), Buglere, Kuna, Embera, Wounaan, Naso (Teribe), and Bri Bri), Panamanian English Creole (a mixture of English and Spanish with elements of Ngabere, also known as Guari Guari and Colon Creole), English, Chinese (Yue and Hakka), Arabic, French Creole, other (Yiddish, Hebrew, Korean, Japanese)
- Religions: Evangelical 55%, Roman Catholic 33.4%, none 10.1%, unspecified 1.5% (2023 est.)
- Median age: 31.7 years (2025 est.)
- Life expectancy at birth: 79.2 years (2024 est.)
- Literacy: 96.3% (2024 est.)

Economy
- Economic overview: upper middle-income Central American economy; increasing Chinese trade; US dollar user; canal expansion fueling broader infrastructure investment; services sector dominates economy; historic money-laundering and illegal drug hub
- Industries: construction, brewing, cement and other construction materials, sugar milling
- Agricultural products: sugarcane, rice, bananas, oranges, oil palm fruit, chicken, plantains, maize, milk, pineapples (2023)
- Exports - partners: China 25%, Japan 10%, USA 6%, Thailand 5%, Costa Rica 5% (2023)
- Imports - partners: USA 15%, Colombia 13%, China 13%, Ecuador 13%, Japan 11% (2023)

Government
- Government type: presidential republic
- Capital: Panama City
- Independence: 3 November 1903 (from Colombia); 28 November 1821 (from Spain)
- Constitution: several previous; latest effective 11 October 1972
- Executive branch: President José Raúl MULINO Quintero (since 1 July 2024)
- Legislative branch: National Assembly (Asamblea Nacional)

## Sources
- [91 FR 18201](https://www.federalregister.gov/documents/2026/04/09/2026-06960/strengthening-actions-taken-to-adjust-imports-of-aluminum-steel-and-copper-into-the-united-states)
- [91 FR 9437](https://www.federalregister.gov/documents/2026/02/25/2026-03832/ending-certain-tariff-actions)
- [90 FR 54091](https://www.federalregister.gov/documents/2025/11/25/2025-21203/modifying-the-scope-of-the-reciprocal-tariffs-with-respect-to-certain-agricultural-products)
- [90 FR 24199](https://www.federalregister.gov/documents/2025/06/09/2025-10524/adjusting-imports-of-aluminum-and-steel-into-the-united-states)
- [Universal 10% reciprocal baseline takes effect](https://www.federalregister.gov/documents/2025/04/07/2025-06063/regulating-imports-with-a-reciprocal-tariff-to-rectify-trade-practices-that-contribute-to-large-and)
- [90 FR 9817](https://www.federalregister.gov/documents/2025/02/18/2025-02833/adjusting-imports-of-steel-into-the-united-states)
- [CIA World Factbook, Panama](https://www.cia.gov/the-world-factbook/)

## Related
- [U.S. tariffs by country](https://policyrisk.com/tariffs)
- [All countries](https://policyrisk.com/countries)
- [Panama on the supply map](https://policyrisk.com/supplymap/country/PA)

Source: PRIA, https://policyrisk.com/countries/pa (as of 2026-11-04).