Pak Elektron Limited, a manufacturer of electronic goods in Pakistan, stands to profit from the ongoing trade war between the U.S. and China, as the imposition of a hefty levy on China produced transformers can provide a competitive edge to the Pakistani company.
Earlier this month, U.S. President Donald Trump imposed 29% in ‘reciprocal’ tariffs on Pakistan before ‘pausing’ them for 90 days to allow for trade negotiations. At the same time, he has raised tariffs on Chinese goods to 145%. This provides a competitive edge for Pak Elektron’s locally manufactured transformers, furthering the exports it commenced in March 2025.
According to brokerage house Sherman Securities, the U.S. imports $5 billion worth of transformers from China annually. The country is the largest supplier of power transformers globally, with annual exports of around $45-50 billion. The U.S. buys a significant quantity of these, with its annual import of transformers totaling $4.5-5 billion.
Following the imposition of the 145% tariff, Chinese transformers have become prohibitively expensive for the American market, boosting demand for cheaper sources. Since March, Pak Elektron has netted $3 million in exports to the U.S., with the company’s management telling Sherman it has revised its export target upwards to $50 million by the end of this calendar year due to rising demand from the U.S.
If Pak Elektron can capitalize on the current situation, notes Sherman, it has the potential to export $150-200 million based on its available capacity of 8,000 transformer units annually. In 2024, per the company, it utilized only 31% of its capacity, manufacturing 2,488 units. Sherman states that for every 10% additional capacity utilization, Pak Elektron’s annual earnings may improve by Rs. 0.6/share.
However, Sherman cautions, if China readjusts its export policy and reduces prices, this could impact the Pakistani transformer market as well. Yet, it notes, Chinese transformers are currently subject to 35% anti-dumping duty in Pakistan.