The United States (U.S.) is introducing tariffs of 30 percent on goods imported from Bosnia and Herzegovina (BiH). Although Donald Trump announced in April that they would amount to 35 percent, he decided it would be five percent less.
The largest volume of exports from BiH to the U.S. comes from defense industry companies, with a share of as much as 60% of the total export. Until now, these goods were subject to a tariff rate of 12 percent, and from now on they will be burdened with a tariff rate of 30 percent.
A smaller portion relates to the export of products from the metal and electrical industry, then the chemical industry, as well as the food and wood industry.
According to data from the Foreign Trade Chamber of BiH for the current year, i.e., from January to June, weapons and ammunition worth 74.4 million BAM were exported to the U.S., followed by iron and steel worth 9.7 million BAM, electrical machines, equipment and parts worth 9.5 million BAM, iron and steel products worth 6.4 million BAM, zinc and zinc products worth 5.5 million BAM, toys and equipment for board games and sports 5 million BAM, etc.
Overall, in five months, goods worth 131.5 million BAM were exported. Interestingly, in the first half of 2024, compared to the same period the previous year, the largest drop in imports was recorded from the U.S. – 10.19%.
Those BiH businesspeople who export their goods to the European Union (EU) market, where buyers then place those products further in the U.S., could also feel the impact of U.S. tariffs, given that the EU and U.S. are still seeking a solution.
“If our buyers from the EU are forced to increase the prices of their products due to imposed tariffs, it could reduce their demand, and consequently the demand for products of BiH companies. The greatest consequences will be for the metal and automotive industries of BiH, which supply a significant number of products to EU suppliers. As a result, we will face pressure on productivity, employment, increased costs, and the start of an inflationary spiral,” the Foreign Trade Chamber of BiH had previously warned.
Total exports to the U.S. in 2024 amounted to 234.5 million BAM, while the value of imports stood at 190 million BAM.
A year earlier (2023), we exported goods to the U.S. worth 203 million BAM, and imported goods worth 252 million BAM, Klix.ba writes.
