As global diamond prices tumble and trade tensions rise, Botswana’s President Duma Boko is leading a bold diplomatic push to protect the nation’s most prized industry.
Speaking to the BBC about ongoing trade talks with Washington, Boko confirmed that discussions with the United States are “in an advanced stage” and that the two nations are “on the verge of reaching an agreement.”
But behind the cautious optimism lies a deeper story, one of a small but resource-rich nation fighting to redefine its place in a global system often tilted in favour of powerful economies.
Botswana Diamonds Under Pressure
Botswana’s diamond industry has long been the country’s economic lifeline, generating billions in export revenue and sustaining thousands of jobs.
Yet, the U.S. currently imposes a 15% tariff on diamonds that are cut and polished within Botswana — an ironic penalty for a nation trying to build value locally rather than exporting raw stones.
Meanwhile, diamonds processed in India face an even steeper 50% import tax, while those cut in Belgium and Canada enter the U.S. duty-free. The uneven playing field has left many African producers questioning whether the rules of global trade truly reward development or simply protect entrenched interests.
According to Business Insider Africa, in 2023, Botswana’s exports to the U.S. were worth about $500 million, but that success is now under strain. Global demand for diamonds has fallen by half, and new U.S. tariffs have made recovery even harder.
The August tariff on Botswana Diamonds
Tensions peaked on August 1, when Washington slapped Botswana with a 37% tariff on diamond imports, combining an existing 10% duty introduced in April with an additional 27% in reciprocal measures.
President Boko did not mince words in response.
“These punitive measures threaten the sustainability of Botswana’s diamond industry and present a serious obstacle to broader economic growth across Africa,” he warned, framing the issue not as a bilateral dispute but as part of a continental struggle for fair trade.
Diplomatic Firepower
Still, Botswana is not backing down. President Boko’s recent trip to the United States was a calculated effort to rebuild bridges, and push for a zero-tariff arrangement that would put Botswana’s diamonds on equal footing with those from Europe.
“We have asked for zero tariffs between Botswana and the United States,” Boko told reporters after meeting with U.S. Secretary of State Marco Rubio.
“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.”
In a lighter moment, Boko added that if former U.S. President Donald Trump were to call about the matter, he “would not hesitate to respond.”
