Panama seeks exemption from Trump’s new tariffs amid trade concerns

Panama’s government has announced it is actively seeking an exemption from the tariffs imposed by US President Donald Trump earlier this week.

In a statement issued on April 4, the Panamanian government confirmed that it is analyzing the potential impact of the tariffs and exploring avenues to exclude the country from their application, Caliber.Az reports via foreign media.

"The scope of this decision and ways to mitigate its impact are being analyzed, including efforts to exclude Panama from its application," the government said.

The document emphasizes that, from the Panamanian Ministry's perspective, the trade policy measures implemented by the United States should align with its commitments under World Trade Organization (WTO) agreements, as well as the bilateral Trade Promotion Agreement (TPA) between Panama and the United States, which was signed in 2007.

The ministry highlighted that the United States remains Panama's largest trade partner, accounting for approximately $180 million in exports, which represents 19 per cent of the country’s total exports.

Key export items from Panama—such as raw cane sugar, bananas, seafood, and scrap copper—currently enter the US market duty-free under the TPA. However, the Panamanian government expressed concern that these goods could be impacted by the newly imposed tariffs.

This move follows President Trump’s announcement of new tariffs targeting a broad range of imported goods. The decision has raised concerns across several countries, including Panama, which has long maintained close trade relations with the United States.

Panama’s government has not yet specified the exact nature of the tariffs or which specific goods would be affected. However, the country’s leadership is focused on minimizing any potential damage to its economy, particularly in sectors crucial to its trade and services industry, such as logistics and maritime trade.

The tariff issue has prompted swift diplomatic responses from several nations, with Panama emphasizing that it will continue to engage in discussions with Washington in the hope of finding a resolution that minimizes the negative effects on its economy.

Panama has also expressed hope that ongoing negotiations could lead to more favorable trade conditions with the US moving forward.

By Vafa Guliyeva