Tariffs Threaten Survival of Bosnian Ammo Makers Amid U.S. Trade Changes

Manufacturers in Gorazde struggle with market instability, dependent on U.S. exports amidst fluctuating tariff rates.

In the mountainous region of Gorazde, Bosnia and Herzegovina, ammunition manufacturers that once played a pivotal role in defending their country during the Yugoslav wars now find themselves navigating a new threat: trade tariffs imposed by the U.S. These tariffs, initiated by President Trump in early April, have sent shockwaves through this small industry that heavily relies on American military markets.

Factories like Ginex and Pobjeda Technology, established during the Yugoslav era, are grappling with uncertainty as they plan for an unpredictable future. Amidst backdrop of a long-standing and solid demand for their ammunition products in the U.S., recent tariffs have left these businesses in a precarious position.

Demir Imamovic, marketing manager at Ginex, expressed deep concern about the implications of the tariffs. The company had been eager to expand its operations, but the looming tariff increases — announced initially at 35 percent and later adjusted to a temporary rate of 10 percent — have created a climate of instability. Imamovic indicated that even the reduced rate could deter American clients, affecting their ability to export effectively.

As these companies battle these unforeseen economic challenges, many workers, previously fortified by their resilience in the face of war, now face a new vulnerability that could threaten their livelihoods and the local economy. The uncertainty lingers, and the future for the ammunition makers of Gorazde is more uncertain than ever before.