Botswana — the world’s second-largest diamond producer after Russia — had been actively lobbying Washington to reconsider or delay the tariff decision. However, diplomatic efforts have yielded no results, and the new duties now apply to an estimated $500 million worth of annual exports from Botswana to the U.S.

Until now, diamonds from Botswana had enjoyed zero-rated status in the U.S. market. With today’s change, U.S. importers will face a combined 37 per cent duty — including a baseline 10 per cent tariff introduced in April and an additional 27 per cent under the new reciprocal measures.

Speaking last month, Botswana President Duma Boko warned that the tariffs would further strain an already fragile global diamond market. “These punitive measures threaten the sustainability of Botswana’s diamond industry and present a serious obstacle to broader economic growth across Africa,” he said.

While the majority of Botswana’s rough diamonds are exported to India, Belgium, and the UAE, the U.S. remains an important high-value market. Industry analysts say that although U.S.-bound goods account for only a modest share of Botswana’s overall diamond exports, the psychological and diplomatic blow is significant.

The tariff structure contrasts with that applied to India, where reciprocal duties are added on top of existing rates. For Botswana, however, the full 37 per cent now applies universally to all applicable exports.

Botswana’s economy, heavily reliant on diamond revenues, has already seen foreign sales shrink dramatically amid a global market slump. The new U.S. tariff is expected to further complicate recovery efforts.