How the US China Trade War Is Making Auto Parts More Expensive in Pakistan

Have you noticed that replacing a simple car part lately feels like a punch to the wallet? 

You’re not alone. 

Drivers all over Pakistan have been scratching their heads at why spark plugs, brake pads, and even bumpers suddenly cost more than they used to. While there are a few reasons (yes, the dollar rate is one), one big culprit sits thousands of miles away the ongoing trade war between the US and China. 

It might sound odd that a tussle between Washington and Beijing affects the price of a Honda Civic’s side mirror in Lahore, but in our globalized car market, that’s exactly what’s happening. 

Let’s break it down in a conversational way, no jargon, just the straight story on how this trade war is driving up auto-part prices around the world and right here at home.

What’s Going On Between the US and China?

For a few years now, the United States and China have been locked in a high-stakes trade war an economic slugfest. It started around 2018 and has been escalating with each side imposing tariffs (extra import taxes) on the other’s products. 

Think of tariffs like a toll gate fee when Chinese products enter the US, they get hit with a big tax, and vice versa. The idea (at least from the US side) was to make Chinese imports more expensive and encourage Americans to buy local. In reality, what happened is that both countries ended up taxing each other’s goods heavily, raising prices for everyone and creating a lot of uncertainty in global trade.

The auto industry has been right in the crosshairs of this fight. The US slapped 25% tariffs on foreign-made cars and auto parts to protect its automakers. China, in return, imposed its duties on American-made cars and parts. Picture it like a tit-for-tat game: “You tax my cars, I’ll tax yours.” 

Now, you might be thinking, “Alright, two superpowers are fighting. But I buy my car parts from Plaza Market or Saddar, not from the US. Why should I care?” Well, this is where the story gets interesting and where your brake pad’s price tag comes into play.

How a Trade War Jacks Up Auto Parts Prices Globally

Shipping containers being loaded at a port global trade disruptions can eventually hit your local auto parts market.

To understand the link, we need to know how interconnected the car industry is. No country makes a car all by itself, not even the US or Japan. Every car on the road is a jigsaw puzzle of parts from all over the globe. An American Ford might have a German transmission, Japanese electronics, and Chinese-made battery cells. A Toyota assembled in Karachi may still rely on components from Thailand or China. Experts note that virtually no vehicle is built with 100% locally manufactured parts – every car uses some foreign parts. It’s a giant web of suppliers and factories spanning continents.

When the trade war kicked in, the first thing it did was raise the cost of these internationally sourced parts. How? 

Those tariffs (import taxes) we talked about. Say a US company was buying fuel pumps or sensors from a Chinese factory. A 25% tariff meant that overnight, those Chinese parts cost 25% more for the US importer. Often, companies had no choice but to pay the higher price, and naturally, they passed that increase on to customers. So, car repair shops in New York or Los Angeles suddenly paid more for the same part than they did last year.

But it doesn’t stop at the US border. Car manufacturers and big parts suppliers operate on thin profit margins worldwide. If their costs go up in one major market, they might hike prices elsewhere to make up for lost profit. Global automakers started feeling pressure to raise car and parts prices to offset the tariffs. For example, one analysis predicted new US tariffs would push vehicle prices up by 10-15% in America, and even cars not directly hit by tariffs could see about a 5% bump. When a company like Toyota or Volkswagen faces higher costs in the US (one of their biggest markets), they might adjust pricing strategies in other regions too. That can mean a ripple effect where car parts get pricier in places outside the US as well.

Then there’s the issue of raw materials and supply chain hiccups. The trade war didn’t just involve finished car parts; it also targeted raw materials like steel and aluminum. The US put tariffs on steel and aluminum imports, which made metal more expensive domestically. That might sound like America’s problem, but consider if steel prices shoot up in the US, American manufacturers might buy more local steel, leaving less of their steel exports for other countries, or they raise global prices to match demand. Meanwhile, China is a huge steel producer; if it can’t sell as much to the US, it might reduce production or try selling to other countries. Either way, the market equilibrium is thrown off. Car parts like body panels, engine blocks, or alloy rims need a lot of steel and aluminum. 

Higher metal costs translate to higher manufacturing costs for those parts. A supplier in Thailand or Korea making suspension components will face pricier raw steel if the global price goes up, and ultimately, the buyer (you and me) pays more for that part.

All these factors meant that by 2019 and beyond, auto parts prices globally started seesawing. Some went sharply up in price; a few might have briefly gotten cheaper if, say, Chinese suppliers had excess stock they dumped in Asia or Africa. But overall, the trend was higher costs and trickier logistics. As one industry expert put it, once the higher tariffs settled in, pretty much “all roads lead to… higher vehicle prices” for consumers. We began to see that even in places far from the US-China battlefield, people were paying more for anything related to cars.

Why Pakistan’s Car Enthusiasts Are Feeling the Heat

By now, you can see the connection that we live in a global village. Pakistan may not be a direct combatant in the US-China trade war, but we’re caught in the side effects. Our country relies heavily on imported auto parts everything from engines and transmissions for local assembly to aftermarket accessories and spare parts for repairs. 

Walk into Lahore’s Montgomery Road or Karachi’s Lucky Star market (famous hubs for car parts) and you’ll find that many products on the shelves originally come from abroad. China, in particular, is a huge source of car parts for Pakistan, thanks to its affordability and massive production. We also import from Japan, Thailand, Malaysia, Europe, and occasionally the US for certain high-end or specialized parts.

When the trade war caused Chinese parts to become more expensive globally, it hit the Pakistani market in a couple of ways. First, many Chinese manufacturers, facing less demand from the US, were under financial stress. Some tried to raise prices on buyers in other countries to make up for lost sales. If a Pakistani importer was buying radiators or fuel injectors from a Chinese supplier, they might have suddenly been quoted a higher price per unit because that supplier’s biggest customer (an American company) cut orders. Even a small increase – say 5-10% – in the wholesale cost shows up as a bigger jump by the time it reaches the retail buyer here, after duties and dealer margins.

There’s also the domino effect on currency and freight. The trade war impacted global investor confidence, sometimes weakening currencies in emerging markets and shaking up shipping routes. The Pakistani rupee was already sliding, and while that’s a separate issue, a volatile global trade scene didn’t help. Freight costs spiked at times due to all the rerouting of goods (and later, the pandemic piled on, but that’s another story). So, the cost to ship a container of auto parts from China or Malaysia to Karachi increased. Add higher shipping to higher part costs, and you get a double whammy on prices by the time those shock absorbers land at Karachi Port.

Let’s not forget, Pakistan’s policies play a role too. We have import duties and taxes on auto parts, and those have been adjusted up and down over recent years to manage our trade deficit. So, some price hike blame falls on local factors. But even if you set those aside, the underlying cost of the parts in international markets has been on an upward trajectory, and the trade war is a big reason why.

The result? Pakistani consumers started noticing that some parts became harder to find or took longer to arrive. For instance, a particular model’s genuine headlights or infotainment unit might go on backorder because the supplier abroad had a backlog due to shifting trade flows. And when it finally came, the price was higher than expected. Our local dealers would often explain the increase with a shrug: 

“Boss, international market mehnga ho gaya hai” (Boss, the international market has become expensive). It’s not just an excuse it’s the truth.

What Can You Do as a Car Owner?

Alright, so the trade war drama isn’t something any of us here can solve. Geopolitics is above our pay grade. However, as car owners and enthusiasts, we can take a few smart steps to soften the impact on our pockets. The key is staying informed and being a bit proactive.

Keep an eye on the news. You don’t need to become a policy wonk, but a general awareness of trade news helps. If you hear that the US and China are hitting each other with a fresh round of tariffs (or conversely, if they’re negotiating a truce), take note. These moves won’t affect prices overnight, but they set the trend. For example, if another tariff hike is announced on Chinese electronics or metals, it’s a sign that parts containing those might get pricier in a few months globally. Knowing what’s coming can give you a head start, kind of like seeing a traffic jam on your route before you leave home.

Another tip is to shop around and stay flexible. In times of volatility, prices can vary between different sellers more than usual. One retailer might have old stock that’s cheaper, while another has new stock at new prices. Checking online marketplaces (like the one on RoadRunnerPK, though I’m not plugging, just saying) and comparing with your local parts bazaar can reveal some surprising price differences. You might also explore alternative brands or slightly used parts (for non-critical components) if the original part becomes too costly. Of course, always ensure quality and compatibility saving a few rupees is not worth a substandard part that could fail at the wrong time.

Finally, supporting local manufacturing and rebuilders where possible can help in the long run. Pakistan’s automotive industry is slowly trying to localize production of some parts. If you find a reliable locally made component or a good rebuilt/refurbished part, give it a shot. The more we can develop trust in local parts, the less we’re at the mercy of international price swings. It won’t change things overnight (and for many high-tech parts we still rely on imports), but every bit of self-reliance adds resilience to our car culture.

Stay Positive and Drive On

It’s easy to get frustrated when global politics makes life tougher for the rest of us. You have every right to groan when the price of that engine mount or side mirror goes up due to something as abstract as a trade war. But knowledge is power. By understanding why these price hikes and shortages are happening, we can make better decisions and not feel so blindsided. The US-China trade war is a complex saga and is still ongoing – there will be twists and turns ahead. The good news is, tensions eventually lead to innovation and adaptation. Companies worldwide are finding new ways to make supply chains more shock-proof so they don’t lose customers. Maybe in a few years, this trade war will cool off, or Pakistan might strengthen its own industrial base; then we could see some relief in prices.

Until then, the best strategy as a consumer is to stay alert and be a smart shopper. Discuss with fellow car enthusiasts you’d be surprised how much you can learn from community tips on where to find a deal or which alternative part works well. At RoadRunnerPK, our goal is to keep you informed and prepared, not just sell you stuff. We’re all part of the same car-loving community, facing the same challenges. So, the next time you’re hit with a higher quote for a part, you’ll know a bit more about what’s driving it. In a way, that makes you one step ahead – you can plan, adjust, and still enjoy your ride without breaking the bank.

In the end, whether it’s a trade war, a pandemic, or something else, the auto enthusiasts in Pakistan have always kept their passion alive. We tune our cars, take them for late-night drives on Canal Road or Sea View, share maintenance hacks, and swap stories – come what may. This trade war is just another bump in the road. With a little knowledge and preparation, we can ride it out together. 

So keep your seatbelt on, stay tuned to both the news and your vehicle’s needs, and as always, drive safe and sensibly!