In the tranquil surroundings of Gorazde, Bosnia, ammunition manufacturers have weathered the storms of war in the 1990s, but they now face an insidious new challenge: tariffs levied by the Trump administration. Since the early April imposition of trade tariffs, companies in this eastern Bosnian city have been forced to adjust their business strategies, with uncertainty looming over their most significant market — the United States.
The rise in demand for ammunition in the U.S. postures Gorazde as a key supplier with factories dating back to Yugoslav times. However, the newly enforced tariffs create unprecedented tension for local businesses. Ginex, a manufacturer known for producing ignition devices for ammo, finds itself at a standstill on expansion plans while trying to decipher the intensity of the tariff environment. With potential tariffs fluctuating drastically—initially quoted at 35 percent, then revised to 10 percent, each rate brings fears that Americans could turn away from their products.
Demir Imamovic, the marketing manager at Ginex, voiced concerns that the confusion surrounding these rates could halt all exports if not managed appropriately. As he pointed out, even a 10 percent tariff could significantly chill interest among U.S. clients. With stakes so high, local companies like Pobjeda Technology find themselves in a precarious position as they determine how to best weather this economic storm.