Panama’s exporters are managing a complex trade landscape in 2025, posting overall growth despite a significant drop in sales to the United States. Data from the first nine months of the year reveals a sector contending with a prolonged agricultural strike and new American tariffs. The country’s total exports reached $754.9 million through September, an increase of $34.2 million compared to the same period in 2024. This positive national figure, however, masks a stark decline in the crucial US market.
Shipments to the United States, Panama’s largest trading partner, fell to $118.3 million. That number represents a negative balance of $22.9 million against the $141.2 million recorded in the first three quarters of 2024. Analysts point to two primary and concurrent pressures. A nearly two-month strike in the key banana-producing region of Bocas del Toro halted shipments of what was, until recently, Panama’s top export commodity. Simultaneously, tariffs enacted by the US administration in August have forced painful pricing adjustments across multiple export categories.
Agricultural Sector Absorbs Strike Impact
The labor dispute in Bocas del Toro delivered a direct blow to Panama’s agricultural export figures. Between January and September 2025, agro-exports fell to $25.5 million, a sharp drop from the $34.3 million recorded a year earlier. Banana exports, which traditionally lead Panama’s shipment roster, saw their share of total exports fall to 8.5% by September. Industry observers note that share was significantly higher in the early months of the year before the strike began.
This disruption forced a rapid reshuffling of Panama’s export basket. Seafood, particularly frozen shrimp, ascended to become the leading export product by value, accounting for 12.5% of all exports. Other products like sugar, citrus fruits, melons, coffee, and vegetables also gained prominence in the wake of the banana shipment freeze. The shift demonstrates a degree of resilience within the broader export sector, even as individual industries faced severe challenges.
“In terms of foreign trade, there is a lot of uncertainty,” said Bianca Morán, president of the Panamanian Association of Exporters (Apex). [Translated from Spanish]
Morán explained that exporters are employing varied strategies to cope with the new US tariff regime. Some have absorbed the cost by reducing their prices and profit margins. Others have attempted to share the tariff burden with their American importers. The goal in every case is maintaining market share under changed and less favorable conditions.
US Tariffs Reshape Trade Dynamics
The 10% tariff imposed by the United States on most imports from Panama, while lower than the rate applied to some regional competitors, has fundamentally altered trade flows. Official statistics show a telling pattern. In April 2025, ahead of the tariff’s implementation, exports to the US surged to $36.5 million as American importers rushed to build inventory. That monthly figure far exceeded the typical average of around $10 million. The subsequent months tell a different story.
With the tariffs active, Panamanian exporters report that US buyers are demanding lower prices to offset the increased cost to American consumers. This pressure has been most acutely felt in the seafood sector, which had briefly become an export leader. Intelcom, the trade intelligence office of the Ministry of Commerce and Industries, reported seafood exports to the US fell to $52.1 million for the first three quarters of 2025. That is a decline of $26.7 million from the $78.8 million exported in the same period of 2024.
Exporters consulted on the matter confirmed they have been forced to reduce prices to remain competitive against producers from other nations. They initially believed Panama’s lower tariff rate would provide an advantage over countries facing higher duties. That advantage has not materialized. Competitors from those nations have simply cut their own prices to stay in the valuable American market, triggering a broader price compression that hurts all suppliers.
“Total exports to September amounted to $754.9 million, which reflects an increase of $34.2 million, and if it were not for the tariffs the result would be much better,” Morán stated. [Translated from Spanish] “But these are the rules of the game and we must work every day with this uncertainty, look for new markets and add more value to exports.”
The search for new markets is already underway. While US seafood sales dropped, exports to other destinations like Taiwan have increased. This diversification reflects a strategic push by Panamanian companies to stabilize their production volumes and reduce dependency on any single market. The success of this effort will be critical for the sector’s long-term health.
Exporters Adapt to a New Reality
The dual challenges of 2025 have accelerated a strategic pivot within Panama’s export community. Moving forward, the focus is on two parallel tracks: managing the immediate relationship with the United States and aggressively cultivating alternative opportunities. The price pressure from US importers is not expected to ease, meaning Panamanian suppliers must find efficiencies in their operations or enhance the perceived value of their products.
Adding value to exports, as highlighted by Apex president Morán, is becoming a central theme. This could involve increased processing of raw materials within Panama before shipment, improved branding, or a stronger emphasis on quality and sustainability certifications that justify premium pricing. The decline in specific product volumes, such as sugar, underscores the necessity of this shift. Simply selling commodities on the global market leaves exporters vulnerable to exactly the kind of tariff and pricing shocks seen this year.
Panama’s overall export growth in the face of these headwinds suggests underlying strength. The positive national tally is fueled by sales to markets beyond the United States and by the agility of exporters who quickly filled the gap left by bananas with other products. This adaptability will be their greatest asset. The coming months will test whether the sector can solidify these new trade pathways and build a more diversified, value-driven export economy that is resilient to external political and economic shifts.