How Tariffs Will Increase Ammo Prices
Hey all, we here at True Shot Academy are going to go over how tariffs will increase ammo prices. Specifically, we are going to examine the recent actions by the United States regarding the announcement of new tariffs on imported goods. As a global industry, these tariffs stand to impact the prices of ammunition and other goods used by shooters. Today we will touch on many aspects of these new tariffs and considerations relating to their impact on pricing and shooters in general. Without further ado, let’s talk about how tariffs will increase ammo prices.
What Tariffs Are We Talking About?
On April 2, U.S. President Donald Trump announced and signed a wide reaching series of tariffs. About 90 countries in total are subject to a 10% baseline tariff on all imports in addition to discounted reciprocal tariffs. This is to say that some countries are subjected to both the universal 10% tariff in addition to increased rates while others are simply subjected to the 10% tariff. Notable examples include China with a 34% rate, the European Union with a 20% rate, and Taiwan with a 32% rate.
What Countries Are Impacted?
These reciprocal tariffs apply to a wide range of countries. Countries all across the globe ranging from China, members of the European Union, Israel, Costa Rica, and Morocco are subjected to these new tariffs. Notably, Canada and Mexico are exempted from the 10% baseline tariff provided they comply with an earlier agreement regarding migration and fentanyl trafficking. Additionally, the United States-Mexico-Canada Agreement (USMCA) still stands and goods complying with this agreement from either Mexico or Canada are exempt from the new tariffs.
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Why is Ammo Impacted?
In addition to domestic production of ammunition, the United States also imports a great deal of ammo from foreign countries. As an imported good from affected countries, ammunition is subject to tariffs and other import-related costs and processes.
Who Pays Tariffs?
Initially, tariffs are paid by businesses who are responsible for importing goods. When prices increase due to tariffs, businesses will be paying higher costs to import goods. Because the cost of doing business increases, importers will often raise the price of their goods to compensate for their higher expenses. As a result, consumers end up paying a higher cost for imported products. Put plainly, importers and ultimately consumers bear the cost of tariffs.
Which Ammo Companies are Impacted?
As mentioned above, these tariffs and rate increases will affect a number of countries and impact imported ammunition. At True Shot Ammo, we carry a wide range of domestically and foreign-produced ammo. Here is a list of the countries and manufacturers we carry which stand to be impacted by these new tariffs and rate increases.
- Serbia - 37% (Baseline Tariff + Discounted Reciprocal Tariff)
- Bosnia & Herzegovina - 35% (Baseline Tariff + Discounted Reciprocal Tariff)
- North Macedonia - 33% (Baseline Tariff + Discounted Reciprocal Tariff)
- Switzerland - 31% (Baseline Tariff + Discounted Reciprocal Tariff)
- South Korea - 25% (Baseline Tariff + Discounted Reciprocal Tariff)
- Czech Republic - 20% (Baseline Tariff + Discounted Reciprocal Tariff)
- Germany - 20% (Baseline Tariff + Discounted Reciprocal Tariff)
- Greece - 20% (Baseline Tariff + Discounted Reciprocal Tariff)
- Hungary - 20% (Baseline Tariff + Discounted Reciprocal Tariff)
- Italy - 20% (Baseline Tariff + Discounted Reciprocal Tariff)
- Lithuania - 20% (Baseline Tariff + Discounted Reciprocal Tariff)
- Sweden - 20% (Baseline Tariff + Discounted Reciprocal Tariff)
- Philippines - 17% (Baseline Tariff + Discounted Reciprocal Tariff)
- Azerbaijan - 10% (Baseline Tariff)
- Brazil - 10% (Baseline Tariff)
- Chile - 10% (Baseline Tariff)
- Oman - 10% (Baseline Tariff)
- Turkey - 10% (Baseline Tariff)
- United Arab Emirates - 10% (Baseline Tariff)
One important thing to note is that Aguila is not on this list. This is due to the fact that Aguila is a Mexican ammo manufacturer and is exempted from this new round of tariffs and rate increases (aside from auto, steel, and aluminum imports). As mentioned above, if Canada and Mexico continue to abide by the existing USMCA agreement, they will remain exempt from these new tariffs. This is to say that as of now, Aguila ammunition costs should not be impacted.
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When Do These Tariffs Go Into Effect?
While the announcement of the tariffs took place on April 2, the reciprocal tariffs have not gone into effect yet. At 12:01am on April 5 the baseline 10% tariff will take effect. Reciprocal tariff rates will go into effect a few days later on April 9 at 12:01am. At time of writing, these new tariffs and rates will take effect in under a week’s time.
How Do These New Tariffs Affect Shooters?
As mentioned above, these new tariffs stand to increase the costs of imported ammunition. Additionally, these tariffs will also impact firearm goods besides ammunition. Imported firearms, optics, accessories, and other shooting goods will also be subject to these tariffs and rate increases. At the end of the day, shooters should prepare for a reality where imported shooting goods like guns, ammo, optics, and accessories see price increases.
Conclusion
The purpose of this piece is not to fearmonger or to stir the pot, we simply wish to provide our readers with an explanation as to the effects of tariffs on ammo pricing. As it stands, these tariffs have not gone into effect just yet. Things still have the potential to change before either the April 5 or April 9 start dates for the tariffs and reciprocal rates. As of now, if nothing changes prior to these start dates, imported goods stand to see increased pricing. With this in mind, we will keep an ear to the ground to provide any updates or inform of any changes regarding these new tariffs. As always, happy shooting.
