What Opportunities Does Panama Have with Trump’s Tariff Suspension?
In a new strategic move, US President Donald Trump announced a 90-day suspension of new tariffs, with the exception of China, which remains subject to a 125% tariff increase. This action once again raises alarm bells about the future of the trade war and its repercussions on the global economy. Panamanian economist Eric Molino, pictured above, spoke about the topic emphasizing that this strategy is nothing new for the U.S. President. “It’s becoming increasingly clear that Trump’s tariff policy isn’t a long-term plan, but rather a negotiating tactic. We saw it with Mexico, Canada, and also Colombia.
He threatens, generates pressure, negotiates, and then backs down,” Molino said. The expert also urged a focus on inward-looking issues affecting the local economy, such as the revival of the construction sector, the mining contract, and the development of key infrastructure projects like the Río Indio. “We may have internal differences, but internationally, we must present ourselves as a united nation focused on attracting investment. While the great titans clash, Panama must project itself as a country where business can be done,” he concluded.
Opportunities amidst Tension
Beyond the bilateral conflict between the United States and China, Molino stressed that Panama should view these movements as an opportunity to strengthen its strategic role in global trade.
Immediate Risks and Local Challenges
Asked about the short-term impact, Molino emphasized that volatility prevents accurate predictions, but he did warn about the possible effects on the dollar and international trade. “Although we can’t say for sure, the trade war and the risk of an escalation between the United States and China could place Panama in a key position due to its strategic and geopolitical value, especially in relation to the Canal,” he explained.
With every challenge comes an opportunity. Panama must seek prominence on the international stage, take advantage of its double taxation treaties and trade agreements, and position itself as a reliable investment destination amid global uncertainty.
