Ammunition Depot Promising Ammo Stability in Tumultuous Times

Ammunition Depot CEO Dan Wolgin has issued a reassuring message to shooters concerned about potential ammunition price increases, stating that recent tariffs and supply chain fears are largely overblown for the American ammunition market.

"Let's put those fears to rest. At Ammunition Depot, we don't foresee any meaningful effects in the near future from the tariffs," Wolgin states in his open letter to customers. He explains that the U.S. ammunition supply chain remains predominantly domestic, insulating it from international trade disruptions.

"Most of our ammunition inventory comes from American manufacturers. That means we're largely insulated from international trade disruptions," Wolgin writes. "While tariffs may impact some imported goods, they have little to no bearing on the bulk of the U.S. ammunition market."

The CEO addresses two specific concerns currently circulating in the shooting community. First, China's December 2024 halt on antimony exports, which Wolgin describes as minimal since "on average, it makes up less than 2% of bullet composition" and "constitutes a tiny fraction of the total production cost of a bullet." He notes this shift occurred before the current tariff situation and is not driving pricing pressure.

Regarding the ongoing domestic smokeless powder shortage, Wolgin acknowledges, "Prices for powder have recently risen by about 15% this year" but emphasizes that "ammo prices haven't moved, thanks to careful inventory management and domestic sourcing."

Perhaps most telling is Wolgin's observation that "Ammo producers have made several attempts over the past two years to raise prices. But in every instance, the market rejected those increases." He adds, "For the last year ammo prices have gone lower, not higher."

The real threat, according to Wolgin, is consumer behavior: "The only real risk to price stability is consumer-driven: panic buying. If fear over tariffs or other rumors triggers a run on ammo, it could lead to short-term shortages and price spikes. That's not supply-chain driven, it's behavioral economics at play."

Wolgin concludes with a clear message: "Despite international tension and economic noise, the American ammo market remains strong, stable, and domestic. At Ammunition Depot, we're monitoring the landscape closely, and we see no legitimate reason to expect a rise in prices driven by tariffs or supply chain issues."

What are your thoughts on the current ammunition market? Let us know in the comments below.