Botswana is on the brink of finalizing an agreement with the United States that would allow its diamonds to enter the American market duty-free, offering the landlocked nation a vital economic boost amid mounting tariff pressures.
Speaking to the BBC about the ongoing negotiations, President Duma Boko confirmed the progress, saying, “The negotiations are in an advanced stage. We are on the verge of reaching an agreement.”
Currently, the U.S. imposes a 15% tariff on diamonds cut and polished in Botswana and imported unset.
Diamonds processed in other countries, such as India, face an even steeper 50% import tax, while only stones cut in Belgium and Canada enjoy duty-free entry into the American market.
These tariffs have placed immense strain on Botswana’s diamond industry, which remains the backbone of its economy.
In 2023, the country’s diamond exports to the U.S. were valued at roughly $500 million, supporting thousands of jobs and contributing significantly to national revenue.
However, recent declines in global diamond demand have caused Botswana’s sales to drop by nearly 50%.
The pressure intensified on August 1, when the United States imposed a new 37% tariff on Botswana’s diamond imports.
This measure combined a 10% baseline tariff introduced in April with an additional 27% levy under new reciprocal trade policies.
Responding to the development, President Boko cautioned that the move could have far-reaching consequences.
“These punitive measures threaten the sustainability of Botswana’s diamond industry and present a serious obstacle to broader economic growth across Africa,” he said.
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Despite these challenges, Botswana has adopted a diplomatic approach to secure relief from Washington.
During his recent visit to the U.S., President Boko met with Secretary of State Marco Rubio to advocate for a zero-tariff arrangement.
“We have asked for zero tariffs between Botswana and the United States. That is what we’ve asked for, and we’ve stated it plainly. We will continue to articulate and defend this position to the United States,” he said.
He added humorously, “We are working around the clock, and if Donald Trump calls us on the matter, I will not hesitate to respond.”
Boko also acknowledged that U.S. officials have raised concerns about the imbalance in trade between the two nations.
“Because of this trade imbalance, they argue that we must be subjected to tariffs. It’s a reality we must acknowledge and engage on with the Americans,” he noted.
In September, Botswana’s Vice President Ndaba Gaolathe and Trade Minister Tiroeaone Ntsima submitted a detailed proposal to U.S. authorities titled “Botswana Strategic Bilateral Engagement on U.S. Reciprocal Tariffs.”
The proposal offers the United States priority access to Botswana’s key mineral reserves while inviting American investment in energy, technology, infrastructure, and healthcare sectors.
The document also stated, “The government would ease entry through the Botswana One Stop Service Center, streamlining permits and approvals. Botswana has also pledged to reduce non-tariff barriers and accept certain U.S. product standards to deepen trade relations.”
As the world’s second-largest diamond producer after Russia, Botswana has made its position clear and is now awaiting Washington’s response.
The proposed agreement, if finalized, could safeguard Botswana’s diamond industry, strengthen bilateral trade, and reinforce Africa’s role in global mineral value addition.
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Image Credit: Diamond World
