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Taurus Gunmaker Views US Plant as Vital for Reducing Tariff Impact

Introduction

Taurus Armas, a prominent Brazilian gun manufacturer, is set to expand its production in the United States to mitigate the impact of new tariffs imposed by U.S. President Donald Trump.

Context

Taurus is recognized as one of the largest gun producers globally, specializing in handguns and small arms for private consumers and security forces alike. Currently, approximately 85% of the 7,000 firearms produced daily at its Brazilian plants are exported to the U.S. market. Additionally, the company has the capacity to manufacture another 3,000 weapons daily at its U.S. facilities.

Developments

While attending the LAAD defense conference in Rio de Janeiro, CEO Salesio Nuhs expressed concerns over the potential effects of the tariffs, which include a 10% levy on imports. Taurus has also signed a memorandum of understanding to acquire Turkey's Mertsav, aiming for completion of the deal in the second half of 2025, which would enhance its product offerings. Nuhs highlighted that this acquisition positions Taurus to be the only company worldwide offering a comprehensive portfolio ranging from .22 caliber to .50 machine guns.

Moreover, Taurus is exploring opportunities in the Saudi market and intends to sign a joint venture agreement with a local firm. A proposal has been submitted to the Saudi government and is currently under review, according to Nuhs.

Conclusion

Taurus Armas is strategically positioning itself to navigate the challenges posed by tariffs and expand its market presence through international acquisitions and ventures, keeping a keen eye on future developments.