Tariffs Threaten Survival of Bosnia's Ammo Manufacturers

The ammunition manufacturers in Gorazde, Bosnia, previously resilient through war, now confront new challenges due to tariffs imposed by the Trump administration, jeopardizing their operations and future.

In the mountainous region of Gorazde, Bosnia, ammunition manufacturers find themselves in a precarious situation exacerbated by new tariffs imposed by the U.S. government under President Trump. Once surviving the chaotic Balkan wars of the early 1990s, these companies are now challenged by the shifting landscape created by international trade policies that threaten their primary source of revenue — exports to the United States.

Historically, Gorazde's ammo factories thrived on the demand for firearms in America, developed during the era when Bosnia was part of the Yugoslav state. However, the recent tariffs, initially set at a staggering 35 percent before being temporarily revised to 10 percent, have left local firms like Ginex and Pobjeda Technology in limbo. According to Demir Imamovic, marketing manager at Ginex, the uncertainty surrounding these rates puts the company at risk of halting its growth efforts altogether.

The local economy, rooted in a historical context of conflict and resilience, now walks a tightrope, as these tariffs could drastically diminish their market presence. Imamovic expressed concern that even a 10 percent tariff, which is significantly higher than previous rates, could deter American customers from proceeding with orders, raising fears of substantial revenue losses for these critical suppliers.

Amid the noise of geopolitical changes and trade negotiations, the ammo manufacturers in Gorazde are now hunkering down, hoping to navigate the uncertainty posed by the tariff environment. The outcome of this dilemma could reshape not only the local businesses but also the intricate webs of international trade relationships that have developed over decades.