US President Donald Trump has reduced the tariff to be imposed on Botswana goods to 15%, much lower than the 37% he had imposed on the country in April.
The tariffs are scheduled to go into effect today, 7 August.
In April, the Trump administration announced a slew of what they referred to as "reciprocal" tariffs against several countries and territories. Botswana was not spared, receiving a 37% import tariff in response to the 74% tariff that Botswana supposedly imposed on US goods.
According to data from the United States Trade Representative, in 2024, the US' trade deficit with Botswana was $301 million, while US goods imports from Botswana were $405 million, comprising mainly of diamonds.
To come up with the initial tariff that countries supposedly imposed on the US, the Trump administration simply divided the US' trade deficit with a particular country.
This formula seems to hold in the case of Botswana:
$301 million (US trade deficit) / $405 million (US imports from Botswana) * 100 = 74%
To now come up with the "reciprocal" tariff that the US would impose on countries, the Trump administration divided the supposed tariff on US goods by two. Again, the formula seems to hold in Botswana's case.
74/2 = 37%
As one of the fastest-growing export markets for Botswana's diamonds, the US is an important destination for Botswana's stones.
With Botswana's economic recovery hinging on the recovery of the diamond market, the adjusted tariffs will offer some relief to Botswana as the country navigates a slumping diamond market.