The export of weapons and ammunition from Bosnia and Herzegovina (BiH) continues to grow regardless of the new United States (U.S.) tariff policy.
Exports are growing at an uninterrupted pace, and the main export market remains the U.S., while the Czech Republic is becoming an increasingly important market.
Exports in the first eight months of this year were between 305 million and 310 million BAM, given that the data from various domestic institutions tracking exports differ slightly.
In any case, this is about 16 percent more than in the same period last year. In August alone, exports were worth 36.6 million BAM, which is almost 24 percent more than the previous month.
Largest exports to the U.S.
To this should be added another category, namely explosives, pyrotechnic products, etc., which are tracked separately, and which we exported over eight months, worth about 93 million BAM.
It should be recalled that U.S. tariffs came into effect at the beginning of August, and BiH was assigned a rate of 30 percent.
Weapons exports continue to grow
There has been much debate about how much these sanctions will affect BiH exports, and it was expected that the defense industry, which is our main asset for exports to the U.S. market, would be most affected.
Overall, we exported these products to the U.S. for 79.4 million BAM over eight months. In second place is the Czech Republic, to which we exported 55.3 million BAM.
What do these data tell us?
Export growth despite tariffs may be the result of several factors: multi-year contracts concluded before the policy change, long production cycles in the defense industry, and deliveries arriving in “full batches” after obtaining export licenses.
Additionally, some suppliers appear willing to temporarily absorb part of the tariff burden through margins or price adjustments, in order to maintain contracted quantities and the continuity of relationships with customers in the U.S.
The market structure is also changing. While the U.S. remains the main destination, strong penetration into the Czech Republic indicates a deeper integration of BiH manufacturers into European supply chains. Such diversification reduces the risk of dependence on a single market and opens the way for further growth through indirect orders within the European Union (EU).
In the coming months, the focus will be on whether the tariff effects will more strongly affect new contracts and tenders signed after the tariffs came into effect.
If the pace of orders and customer diversification is maintained, the sector could continue to grow, albeit with somewhat tighter profit margins, Biznis Info writes.
