Tariffs Threaten Future of Ammo Makers in Bosnia Amid U.S. Trade Wars

In the wake of recent tariffs announced by President Trump, ammunition producers in the Bosnian city of Gorazde are grappling with potential survival threats as they heavily rely on the U.S. market for their products.

Shielded by Bosnia’s mountains, the ammunition industry in Gorazde has a long history, dating back to the early 1990s when it played a vital role during the conflict against Serbia, manufacturing shells and bullets for defense. Fast forward three decades, and these same manufacturers are confronting a new obstacle: President Trump’s sweeping tariffs imposed on numerous trading partners, including Bosnia.

This latest development has sent shockwaves through Gorazde, a city that depends significantly on the export of ammunition. One of the local firms, Ginex, specializes in producing ignition devices known as primers for ammunition. The firm's marketing manager, Demir Imamovic, expressed anxiety over the uncertainty surrounding tariff rates. Initially set at a staggering 35 percent after President Trump's announcement on April 2, a temporary revision later reduced it to 10 percent, which still poses challenges for maintaining a foothold in the American market.

Imamovic highlighted the detrimental impact of these tariffs, stating that the high costs could halt all exports, thereby stalling the company’s expansion plans. Even the lower rate of 10 percent can be intimidating for potential American buyers, who may seek alternatives owing to the higher costs. The fate of this company and others like it hangs precariously in the balance as they navigate not only a fluctuating tariff landscape but also the broader implications of international trade policy.

As Gorazde's manufacturers hunker down and assess their options, the uncertainty generated by U.S. tariffs leaves them in a challenging position, forcing them to adapt or risk being left behind in a critical market.