Namibia warns of threats to trade, gov't revenue posed by U.S. tariffs

Newly imposed tariffs by the United States could weigh heavily on Namibia's trade balance and government finances, particularly threatening the country's polished diamond exports, Bank of Namibia Governor Johannes Gawaxab has warned.

WINDHOEK, Aug. 21 (Xinhua) -- Newly imposed tariffs by the United States could weigh heavily on Namibia's trade balance and government finances, particularly threatening the country's polished diamond exports, Bank of Namibia Governor Johannes Gawaxab warned on Wednesday.

The U.S. decision to impose a 15-percent tariff on polished diamonds may reduce export volumes and erode government revenue, Gawaxab said following a monetary policy dialogue.

Diamonds, which contribute roughly 10 percent of gross domestic product (GDP) and over one-fifth of export revenues, remain one of Namibia's most critical sources of foreign exchange and public income.

Gawaxab noted that while uranium, a key export commodity for Namibia, is exempt due to its strategic importance to the United States, other commodities such as marble and salt now face higher costs and reduced competitiveness in the U.S. market as a result of the tariffs.

The governor cautioned that the trade measures come at a time when Namibia's economy is already slowing, with GDP growth projected at 3.5 percent in 2025, down from 3.7 percent in 2024.

According to the central bank, industry stakeholders at the monetary policy dialogue echoed concerns, warning that the tariffs could dampen Namibia's export competitiveness in the short term, while urging continued dialogue to help exporters navigate the challenges.

The United States imposed new tariffs on imports from most African countries, including Namibia, effective Aug. 1, under its so-called "reciprocal" trade policy.■