Botswana Nears Zero-Tariff US Diamond Deal Amid Sales Decline

Botswana, heavily reliant on its diamond industry, is negotiating an advanced-stage trade agreement with the United States that could allow its diamonds to enter the U.S. market duty-free, a potential economic lifeline amid severe challenges. Currently, Botswana faces a 15% tariff on diamonds cut and polished domestically, while diamonds processed in India incur a 50% import tax, and those from Belgium and Canada enter duty-free. The situation worsened when the U.S. imposed a 37% tariff on Botswana’s imports, combining previous duties and new reciprocal measures, which President Duma Boko condemned as punitive and a threat to Africa's broader economic growth. Botswana aims to increase in-country diamond processing to add value and reduce raw mineral exports, aligning with a continental push for fairer trade practices. Despite a significant 50% drop in diamond sales due to falling global demand, President Boko remains optimistic about reaching a zero-tariff deal with the U.S., emphasizing ongoing diplomatic efforts and readiness to engage directly with U.S. leadership. This deal is viewed as critical for sustaining Botswana’s economy and advancing African economic interests in global trade.