Botswana-US continue dialogue despite 15% modest tariffs
Pauline Dikuelo | Tuesday August 19, 2025 15:55
In the Friday announcement, the Ministry of Trade and Entrepreneurship said the US has cut the diamond rich country’s approved export rate to the American market from 37% to 15%, effective August 7, 2025, under a revised reciprocal tariff structure. The downward revision comes just four months after the higher rate was approved in April this year. The Ministry added the change follows US’ broader adjustments to tariffs applied to its foreign trading partners, including Botswana, as part of an evolving global trade environment, advising that further revisions could follow.
To address the latest tariff cut, Botswana and the US will continue negotiations aimed at eliminating the remaining 15% rate, government said. “These discussions aim to address specific concerns of both parties and strengthen bilateral trade ties,” a statement signed by Joel Ramaphoi, Permanent Secretary in the Ministry of Trade and Entrepreneurship stated. While Botswana’s direct exports to the US are relatively small, the country is expected to feel the impact through its role in the diamond pipeline. The US is the diamond sector’s largest market, accounting for more than 50% of global sales. Most of Botswana’s rough diamonds are routed through processing centres in India, the United Arab Emirates, Belgium, and Israel before arriving in the US as polished jewellery. However, the diamond supply chain now faces mounting pressure. India, which cuts and polishes about 90% of the world’s rough diamonds, was hit this week with a 25% tariff by President Donald Trump. China, a smaller player in diamond processing, faces even steeper tariffs of up to 125%. In April, Trump also imposed a 10% baseline tariff plus a matching 10% reciprocal tariff on UAE imports, another crucial hub in Botswana’s diamond trade route.
Meanwhile, US and Belgium have reached a new trade agreement, ending a month's long standoff between two of the world’s largest economic blocs. Under the deal, the US will apply a 15% tariff on all European Union goods, which is half the 30% rate Trump had previously threatened to slap on its largest trading partner.