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Botswana is on the brink of securing a trade agreement with the United States that would allow its diamonds to enter the U.S. market duty-free—offering a vital economic boost for the diamond-reliant nation facing mounting strain from steep tariffs.
President Duma Boko confirmed to the BBC that negotiations are at an advanced stage, stating, “We are on the verge of reaching an agreement.” The deal, if finalized, would lift a 15% tariff currently levied on diamonds that are cut and polished in Botswana but imported unset into the U.S. In contrast, diamonds processed in countries like India face a 50% duty, while those from Belgium and Canada enter the U.S. tariff-free.
Botswana’s diamond sector—a critical pillar of its economy—has been hard hit by both the tariffs and a sharp drop in global demand. In 2023 alone, the country exported roughly USD 500 million in diamonds to the U.S., sustaining jobs and government revenue. However, diamond sales have since plummeted by 50%.
Tensions escalated further on August 1, when the U.S. imposed a new 37% duty on Botswana’s diamond imports. This included a 10% base tariff introduced in April and an additional 27% as part of new reciprocal trade measures. President Boko criticized the move, warning that it could severely disrupt not only Botswana’s economy but broader economic growth across Africa.
In response, Botswana has actively pursued diplomatic engagement. During a visit to Washington, Boko met with U.S. Secretary of State Marco Rubio to press for zero tariffs. “We’ve been clear—we’re asking for the removal of all tariffs between our countries,” Boko said. “We’re working tirelessly to secure a deal, and if Donald Trump reaches out, I’ll be ready to respond.”
U.S. officials have argued that the current trade relationship is imbalanced, noting that while Botswana enjoys access to American markets, U.S. goods and services face barriers in Botswana. Boko acknowledged the issue, saying, “It’s a reality we must engage on.”
In September, Vice President Ndaba Gaolathe and Trade Minister Tiroeaone Ntsima presented a proposal titled “Botswana Strategic Bilateral Engagement on U.S. Reciprocal Tariffs”. The plan offers the U.S. priority access to Botswana’s strategic mineral resources and invites American investment in energy, infrastructure, technology, and healthcare.
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The proposal also promises streamlined investment processes through the Botswana One Stop Service Center, reduced non-tariff barriers, and acceptance of certain U.S. product standards to facilitate deeper trade ties.
As the world’s second-largest diamond producer after Russia, Botswana is determined to protect its key industry while positioning itself as a gateway for responsible mineral sourcing and value addition across Africa. The country now awaits Washington’s response as hopes rise for a breakthrough that could reshape its economic future.
