Bank of Namibia's Warning on US Diamond Tariffs
April 29, 25
(IDEX Online) - Namibia's diamond industry may be pushed into deeper crisis if United States (US) president Donald Trump pushes ahead with implementing an export tariff of 21% on Namibia.
The governor of the Bank of Namibia has warned that US tariffs on diamonds - which account for 29 per cent of the country's exports - could push the country into a deeper crisis.
It is already suffering the worst drought in over a century, compounded by the slump in diamond demand and other economic hardships, spiralling unemployment and a malaria outbreak.
"The diamond is already going through a difficult time because of low demand, and competition from lab-grown diamonds, and now you have all these tariffs," said governor Johannes !Gawaxab*.
Namibia currently enjoys duty-free exports to the US on diamonds and most other products, but President Donald Trump announced a 21 per cent export tariff for the country in his 2 April "Liberation Day" speech.
He subsequently said there would be a 90-day pause before reciprocal tariffs on a whole list of countries were implemented.
Namibia is world's eighth biggest diamond producer by carat, and the sixth by value, primarily from marine diamonds. Last year 12.4 per cent of its polished diamonds were sold to the US.
*The exclamation mark represents a click sound in Khoekhoegowab, an official language of Namibia.
Pic shows Benguela Gem, one of Debmarine's diamond vessels