The recent announcement by US President Donald Trump to impose heavy tariffs on exports from Serbia and Bosnia has sent shockwaves through the global trade community. The decision to levy a 35-per-cent tariff on Serbian exports and a 30-per-cent tariff on Bosnian exports is expected to have far-reaching implications, particularly for the defense industries of both countries.
In a move aimed at addressing what he perceives as trade imbalances, President Trump defended the decision as crucial for achieving
“more balanced, and fair, trade”
. The tariffs are part of a broader strategy to reshape US trade relationships with various countries that have been deemed unfavorable in terms of reciprocity.
According to Trump’s communication via his Truth Social profile, the higher tariffs are set to take effect from August 1. While initially announced in April with higher percentages, there was a slight reduction in the final rates imposed on Serbia and Bosnia. Notably, Trump granted a 90-day pause on tariffs for most nations except China.
In his letters addressed to the presidents of Serbia and Bosnia – Aleksandar Vucic and Zeljka Cvijanovic respectively – Trump underscored the option for these countries to avoid tariffs by relocating their production facilities to the United States. This proposition aims to incentivize domestic manufacturing while reducing costs for these nations.
Admir Cavalic, an esteemed Bosnian economic analyst, expressed concerns about the detrimental impact of these tariffs on Bosnia’s defense industry. He highlighted that this sector would bear the brunt of the new trade restrictions. Cavalic emphasized the urgent need for proactive measures to mitigate potential economic fallout:
“It’s time to act and try to resolve this issue through bilateral relations.”
Moreover, statistics reveal interesting insights into the export dynamics between Serbia, Bosnia, and the US. Serbian exports amounted to $670.1 million in 2024 but accounted for only 2.2 per cent of total exports during January-May 2025 period. Key export items included tyres, arms, machine parts, animal feed, fruits, and copper.
On the other hand, Bosnia’s foreign trade heavily relies on its defense industry vis-a-vis its relationship with US markets; however,the actual impact is significant given that only one percent of its total foreign trade is linked with America.
Trump’s decision underscores his administration’s commitment towards reshaping international trade dynamics based on reciprocity principles rather than persisting long-term deficits encountered due to existing policies and barriers.
As global economies navigate these challenging times marked by evolving trade landscapes influenced by political decisions such as hefty tariffs,it remains vital for nations like Serbia and Bosnia-Herzegovina,to explore strategic alternatives,to manage potential economic repercussions effectively,and uphold their competitive edge in international markets.
