Botswana Eyes EU Trade Boost After U.S. Tariff Shock

Botswana’s Foreign Minister Phenyo Butale has called on the European Union to deepen economic engagement with the country after U.S. President Donald Trump’s administration imposed a 37% tariff on Botswana’s exports. Speaking at the EU-AU ministerial summit in Brussels, Butale warned the tariff threatens the country’s fragile, trade-reliant economy and urged Europe to invest strategically.

“There is room for us and Europe, and Belgium, to improve our trade and ensure that we benefit mutually,” Butale told Euronews.

Botswana’s economy, which contracted 3.1% last year, relies heavily on diamond exports. Despite the downturn, the government projects 3.3% growth in 2025, driven by a rebound in the diamond sector and expansion in non-mining industries. The new U.S. tariff has dealt a fresh blow, especially with the looming expiration of the African Growth and Opportunity Act (AGOA), under which most U.S. exports were made.

Still, Butale maintained that ties with Washington remain intact. “We are engaged through bilateral and diplomatic channels,” he said, expressing hope for a “mutually beneficial solution.”

The European Union—Botswana’s second-largest trading partner after South Africa—has steadily maintained ties through the EU-SADC Economic Partnership Agreement since 2016. Brussels recently pledged €24 million to support Botswana’s digital, green, and employment sectors through 2027.

“There are a lot of opportunities in the mineral sector, especially with the global rush for rare earth minerals,” Butale added, positioning Botswana as a stable and resource-rich partner ready for investment.