The picturesque city of Gorazde in eastern Bosnia, cradled by mountains and forests, is finding its resilience tested once again. After surviving the ravages of the Balkan wars in the 1990s, the local ammunition manufacturers now grapple with a new, pressing crisis: tariffs imposed by the United States under former President Trump in April 2025.
For decades, Gorazde's economy relied heavily on its weapons factories, which were established during Bosnia's time as part of Yugoslavia. These factories thrived on the U.S. market for ammunition, especially during times of increased gun sales. However, the recent changes in U.S. trade policy have thrown the industry into turmoil.
Local firm Ginex, which specializes in producing ignition devices known as primers, has put expansion plans on hold as it tries to assess the implications of the tariffs. Initially announced as a staggering 35 percent tax, the rate was later revised to 10 percent, but even this increment poses a significant challenge to their business relationships in the United States.
Demir Imamovic, Ginex's marketing manager, explained the severe consequences of these tariffs: “It would stop all our exports,” highlighting the grave concern that even a modest tariff increase could deter American customers. The uncertainty surrounding the final tariff rate has sparked fears that the allure of Gorazde's ammunition might dwindle significantly if such pricing changes persist.
As Gorazde’s ammunition producers navigate these immense challenges, the future of their industry hangs in the balance, reminiscent of past conflicts that once threatened their very existence.
