US Importers to Pay 37% Tariff on Botswana Diamonds
July 31, 25
(IDEX Online) - The US is almost certain to go ahead and impose a 37 per cent tariff on all goods imported from Botswana, starting tomorrow (1 August).
That is one of the highest rates of tariff being introduced by the US.
Botswana, the world's second biggest diamond producer after Russia, has been actively seeking dialogue with the US government to reverse or mitigate the tariff, but without success.
Last month President Duma Boko said tariff imposed on Botswana worsened the already bleak future faced by the diamond industry, and were likely to hinder efforts to grow the African economy.
Most of Botswana's rough diamonds are sold direct to India, Belgium, and the UAE, but goods worth around $500m annually are exported to the US and will be subject to tariffs. Until now diamonds have been zero-rated.
US importers will have to pay a total of 37 per cent in duties. The reciprocal duty includes the 10 per cent baseline duty that was imposed back in April.
The tariff rules for Botswana, and most other countries, are unlike those for India, where the reciprocal tariff is in addition to the baseline 10 per cent.
US-bound diamonds represent a modest slice of Botswana's total diamond export business, and most of the country's diamond revenue is not directly affected by the new US tariff.
It is, however, another blow to a country that relies on diamonds for the vast majority of its export revenue, and that has seen foreign sales halve amid the global downturn.
Pic show Orapa diamond mine, Botswana.