Under Fire From Trump's Tariffs, Ammo Makers in a Balkan Valley Hunker Down
Shielded by mountains and thick forests, the ammunition producers in Gorazde, located in eastern Bosnia, managed to survive the intense Balkan wars of the early 1990s. Their factories played a pivotal role in supplying bullets and shells to defend their newly established nation against Serbian aggression. However, three decades later, they now face a new adversary: the sweeping tariffs imposed by President Trump in April 2025.
The demand for firearms in the United States has historically provided a stable marketplace for the ammunition manufacturing sector in Gorazde—an industry dating back to the Yugoslav era, where multiethnic cooperation was once the norm. The recent tariff actions, however, threaten to disrupt these established ties and wreak havoc on the local economy. Companies such as Ginex, which produces crucial ignition devices used in ammunition known as primers, are holding back on expansion plans until they have clarity on the tariffs impacting their exports to the United States.
Initially, there was speculation that a tariff of 35 percent would be enacted, but a temporary adjustment down to 10 percent followed soon after. Despite this reduction, Demir Imamovic, Ginex’s marketing manager, expressed concern, stating, "Even a revised rate of 10 percent—more than double the previous rate—risks driving away American customers." The uncertainties surrounding these tariff rates present a dire challenge, as Imamovic noted that "it would stop all our exports."
The situation in Gorazde stands as a microcosm of the complexities faced by small producers in the age of modern trade negotiations. As these manufacturers hunker down, they brace for potential repercussions that could reshape their industry’s landscape, echoing the broader dilemmas faced by global trade relationships today.
Shielded by mountains and thick forests, the ammunition producers in Gorazde, located in eastern Bosnia, managed to survive the intense Balkan wars of the early 1990s. Their factories played a pivotal role in supplying bullets and shells to defend their newly established nation against Serbian aggression. However, three decades later, they now face a new adversary: the sweeping tariffs imposed by President Trump in April 2025.
The demand for firearms in the United States has historically provided a stable marketplace for the ammunition manufacturing sector in Gorazde—an industry dating back to the Yugoslav era, where multiethnic cooperation was once the norm. The recent tariff actions, however, threaten to disrupt these established ties and wreak havoc on the local economy. Companies such as Ginex, which produces crucial ignition devices used in ammunition known as primers, are holding back on expansion plans until they have clarity on the tariffs impacting their exports to the United States.
Initially, there was speculation that a tariff of 35 percent would be enacted, but a temporary adjustment down to 10 percent followed soon after. Despite this reduction, Demir Imamovic, Ginex’s marketing manager, expressed concern, stating, "Even a revised rate of 10 percent—more than double the previous rate—risks driving away American customers." The uncertainties surrounding these tariff rates present a dire challenge, as Imamovic noted that "it would stop all our exports."
The situation in Gorazde stands as a microcosm of the complexities faced by small producers in the age of modern trade negotiations. As these manufacturers hunker down, they brace for potential repercussions that could reshape their industry’s landscape, echoing the broader dilemmas faced by global trade relationships today.
