The result means that the United States clinched their eighth consecutive berth at the FIFA Women's World Cup. Canada also moves on to the final of the championship where they'll face the victor of Sunday's United States vs. Jamaica game on Wednesday.
The US cruised through the second half, adding an exclamation point with Morgan's penalty in the 84th minute.
The final and third-place match are set for Wednesday night.
The U.S. moves on to Wednesday night's final where it will face Canada, which also book a spot for next year's World Cup in France with a win in the other semifinal.
Sinclair, who took her tally of global goals to 177, ignited Canada with a header in the 44th minute after they had been frustrated in the early going by Panama. The top three finishers in the CONCACAF Women's Championship will represent the region in France, so the winners of both semi-finals have already earned a berth. The only time Canada has missed out on the game's premier tournament was in 1991, the event's first year. "We just played this game and now it's about being professional and moving unto the next game and mentally prepping for that - shutting this door and opening the next one, and getting physically and mentally ready for Panama", she said. "It was obviously our goal coming into this tournament".
Panama has never been to a World Cup.
"There's a lot of changes happening", Suarez said through a translator about Panama's recent rise. In the 15th minute, right back Abby Dahlkemper, only steps from the midfield line, pin-pointed a 50-yard diagonal pass to Megan Rapinoe, who scored from seven yards.
Canada had the best chances in the first half, including Allysha Chapman's shot in the 12th minute that was just off target and hit the side of the net, before Sinclair broke through.
Jesse Fleming added another goal for Canada in the 48th minute, a short time before Sinclair's second. Janine Beckie and Rebecca Quinn also scored before Leon's brace. Leon has six goals in the tournament. Matheson played 90 minutes in her 200th global appearance. The midfielder has played for the national team since 2003.