Botswana Engages U.S. On Lower Tariffs, AGOA Clarity

Botswana will continue talks with Washington after the United States cut reciprocal tariffs on its exports from 37 percent to 15 percent, the Ministry of Trade and Entrepreneurship has confirmed.

The tariffs reflect a broader shift in U.S. trade policy under the Trump administration, which is moving away from unilateral concessions toward reciprocal frameworks.

“To further reduce or eliminate the 15 percent reciprocal tariff, Botswana and the U.S. continue negotiations. These discussions aim to address the specific concerns of both parties and strengthen bilateral trade ties,” the Ministry said.

Trade and Entrepreneurship Minister Tiroeaone Ntsima said the revision is progress, but the government will continue pressing for further concessions.

“The Government of Botswana only recently had its first engagement with the U.S. government on the issue of reciprocal tariffs. After having initially been hit with a universal tariff of 37 percent, we have been informed that it has been revised to 15 percent. Though we would have loved a zero-rated tariff, comparatively, we are better off than some of our competitors for the U.S. market,” Ntsima told The Business Weekly & Review .

Despite the adjustment, concerns remain about the disruptive impact tariffs have already had on Botswana’s trade with the United States. The Washington-based Centre for Global Development said that while lower duties are “relatively good news” for African countries, uncertainty has already damaged export flows.

Data shows imports from Botswana into the U.S. fell from $45.7 million in May to $4.7 million in June 2025. While part of the drop may reflect seasonal trends, imports during the same period in 2024 fell from $87 million to $19.6 million when duty-free access was still in place. The Centre said the steep decline underscores the chilling effect of tariff uncertainty.

The think tank noted that while the 15 percent tariff could become a new baseline for Botswana and similar economies, it is unclear whether U.S. buyers will return or if they have already secured contracts with alternative suppliers.

“Another question is whether there will be any shifts from markets with 15 percent tariffs to those with 10 percent tariffs that export similar products,” the Centre said.

Looming in the background is the expiration of the African Growth and Opportunity Act (AGOA) on Sept. 30, 2025. The deal is widely expected to lapse, with U.S. legislators unlikely to back it amid rising protectionism.

Enacted in 2000 under the Clinton administration, AGOA provided eligible sub-Saharan African countries with duty-free access to the U.S. market for 25 years. The initiative was not only a cornerstone of U.S.-Africa trade policy but also a catalyst for investment in industries ranging from textiles to agriculture.

Although AGOA offered more than 6,000 preferential tariff lines, for Botswana the benefits were largely limited to apparel exports, which peaked in 2008 at P1.8 billion but later collapsed as local firms struggled with high costs, competition and limited incentives. By 2021, Botswana’s use of AGOA had fallen from 100 percent to zero, leaving the country with the lowest exports under the scheme on the continent.

Against this backdrop, the government is pressing Washington for clarity on both the current tariff regime and the future of AGOA.

“We hope to continue negotiations with the U.S. government for clarity on specificities together with the future of AGOA post its expiration on 30th September 2025,” Ntsima said.

Tariff decisions by the Trump administration remain difficult to predict, and the government has noted that developments are unfolding within a fluid global trade environment where further adjustments may yet be introduced.