Wave of US tariff refunds flows back to Chinese firms, buoying profits by millions

The wave of US tariff refunds is reaching Chinese companies. More than US$38 million in tariff rebates, plus accrued interest, from US Customs and Border Protection (CBP) has landed in the bank accounts of five listed Chinese firms since last month, providing a windfall that is expected to bolster their earnings.

The five listed firms primarily operate in the automotive and healthcare sectors. Each secured an average tariff refund of US$7.64 million, representing between 13.12 per cent and 53.58 per cent of their 2025 net profit, according to the companies’ annual reports and filings. The funds were disbursed through accounts held by their US subsidiaries.

The largest payout went to the US subsidiary of Zhejiang-based Huahai Pharmaceutical, which has received more than US$14.2 million in tariff refunds. The sum is substantial for the drug maker, equivalent to 36.36 per cent of its full-year 2025 net profit. In its exchange filing, the firm noted that the refunds would “impact its profit in the second half of this year”.

Guizhou Tyre, based in southwest China, generated more than 45 per cent of its annual revenue from overseas markets last year. Its core products sold in the US are trailer and off-road tyres. In an announcement released on Friday, the tyre maker disclosed that its US subsidiary had received more than US$11.98 million in combined tariff refunds and interest, which would be factored into its 2026 financial statements.

And the wave is far from finished. Figures from Chinese data provider Wind show that more than a dozen mainland enterprises had either filed disclosures or responded to investors via online interaction platforms, confirming they had submitted applications.

“The tariff rebates benefit not only firms with US subsidiaries, but also original equipment manufacturers (OEMs),” said Zhou Zheng, an analyst with Shanghai-based Aijian Securities. “The refunds, in theory, will boost US importers’ appetite and financial capacity to restock, while curbing their urge to drive down prices in negotiations. This will ultimately benefit Chinese OEMs.”