There is hope for Botswana diamonds following the July announcement that the country’s immediate tariff exposure in the United States has been removed. As of July 24, 2026, Botswana exports to the US, including natural diamonds, enter duty-free and continue to benefit from preferential access under the African Growth and Opportunity Act (AGOA).
However, government officials say the priority now is to safeguard this position, through AGOA renewal in Washington and close monitoring of tariff developments affecting India and the global diamond value chain.
On the back of the US Supreme Court ruling that struck down the US tariff system based on the International Emergency Economic Powers Act (IEEPA), a new tariff regime based on Section 122 of the 1974 US Trade Act imposed a universal 10% tariff on imports from all countries.
Exceptions were made for products already tariffed under separate provisions of the Trade Act, for example, Section 232 tariffs on steel, aluminium.
As a result, Botswana’s exports to the US including diamonds were subject to10% tariffs under Section 122. Tariffs under Section 122 are only permitted for up to 150 days, unless Congress authorises their continuation. This was therefore a temporary measure.
On March 12, 2026, the US Trade Representative launched Section 301 investigations (under the1974 US Trade Act) into 60 economies to determine whether they had adopted and effectively enforced prohibitions on goods produced using forced labour.
Additional investigations were initiated against six countries for excess capacity concerns. As of July 24, 2026, those investigations are still underway.
Botswana was not one of the countries investigated under either of those Section 301 actions.
The current situation is that the temporary (Section122) tariff measures expired at 12:01a.m.US Eastern Time on July 24, 2026. As a result, Botswana-origin exports, including natural diamonds, can now enter the US at 0% tariff and the country additionally has preferential market access to the US under the AGOA.
The immediate tariff-related risk to Botswana’s exports to the US has been removed while the most important trade policy issue is the future of AGOA
“AGOA is scheduled to expire on 31 December 2026. The US Administration has indicated support for renewal only if the programme is modernised, potentially including revised eligibility requirements and greater reciprocity in market access,” stated a recent notes from Office of the President,
“Discussions are expected to intensify when the US Congress returns in September. Failure to renew AGOA would reduce Botswana’s preferential access to the US market and affect the competitiveness of Botswana exports.”
The other most significant commercial risk for Botswana remains India, which faces 10% tariffs for exports to the US but further tariffs remain possible. While current indications suggest that diamonds will be exempted under a future US-India trade deal, uncertainty remains until any agreement is finalised.
“The US Congress is considering legislation that could impose up to100% tariffs on countries importing significant quantities of Russian oil and gas. Although waiver provisions are expected to provide the US President with implementation flexibility, the final outcome remains uncertain.”