HomeNewsGovt Non-Committal on Diamond Tariff Deal with U.S.

Govt Non-Committal on Diamond Tariff Deal with U.S.

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The government has struck a cautious tone on ongoing trade negotiations with the United States.

In a response submitted before Parliament, the government indicated that discussions overall tariffs on rough diamonds remain unresolved despite months of engagement.

Responding to a question in Parliament this week, the Ministry of Minerals and Energy confirmed that no agreement has yet been reached on a proposed zero-tariff arrangement for rough diamond exports to the United States.

The question which was asked by Kgatleng West MP Unity Dow, sought clarity on whether Botswana had secured duty-free access for its diamonds and what the prevailing tariff rate currently stands at.

Kgatleng West MP Unity Dow

The ministry indicated that Botswana was initially hit with a steep 37 percent tariff following the introduction of a reciprocal trade policy by the United States in April 2025. The policy targeted countries deemed to have significant trade imbalances with Washington.

The absence of a firm commitment from either side raises concerns about the potential impact on Botswana’s competitiveness in the lucrative U.S. market, particularly as global diamond demand remains sensitive to pricing shifts driven by tariffs and trade barriers.

“Following diplomatic engagements led by the President, the tariff rate on Botswana exports to the U.S. was reduced to 15 percent in August 2025,” it said.

However, the ministry stopped short of indicating any imminent breakthrough starting that negotiations are still ongoing.

“We have given them our offer and requests and await their response. The current tariff is at 15 percent,” it added.

Diamonds

The absence of a firm commitment from either side raises concerns about the potential impact on Botswana’s competitiveness in the lucrative U.S. market, particularly as global diamond demand remains sensitive to pricing shifts driven by tariffs and trade barriers.

It is understood that a zero-tariff agreement would significantly boost Botswana’s export prospects, allowing its rough diamonds to enter the U.S. market more competitively against producers facing lower or no duties; however, the government appears to be playing a waiting game with officials suggesting that the next move lies with Washington.

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