US scrutiny deters some Chinese tariff refund claims as others cash in

Originally published on Nikkei Asia (August 25, 2026)

NEW YORK/TOKYO -- Heightened U.S. scrutiny of trade fraud is deterring some Chinese companies from attempting to claim tariff refunds, experts say, even as millions of dollars flow back to others.

Chinese businesses have collected close to $160 million in tariff rebates since the U.S. Supreme Court struck down President Donald Trump's emergency "reciprocal" tariffs in February, according to Nikkei Asia's tally of listed companies.

As of Monday evening, at least 17 publicly traded companies in Shanghai and Shenzhen -- businesses ranging from technology to tires, pharmaceuticals and packaging materials -- said they received refunds and accrued interest from U.S. Customs and Border Protection, generally through U.S. subsidiaries or in some cases possibly external agents. The rebates offer a boost for their books this year.

But other Chinese companies, many of them smaller suppliers, are cautious about recovering the illegally collected tariffs, according to customs brokers and trade lawyers. Submitting a refund claim requires every detail of import records to be reviewed again by customs officers, which could expose how rules were bent or broken and open the door for penalties.

"Their worry is more scrutiny," said Robert Khachatryan, founder of Freight Right Global Logistics. The company has worked with more than 180 companies seeking tariff refunds, including many Asian ones.

To request a refund, companies must apply through their customs broker or the importer of record. Once approved, the refunds are issued into a U.S. bank account, which many small Chinese companies do not have.

Khachatryan said Chinese exporters used freight forwarders to assist with shipments last year, but many of the importing companies are now unreachable or have dissolved. "The concern is that there is no viable entity to claim the refund," Khachatryan said.

After Trump imposed tariffs as high as 145% on Chinese goods in April 2025 and later ended the "de minimis" exemption for small parcels, many Chinese companies and American importers found ways to ease the tariff burden, sometimes illicitly.

Freight forwarders have built a logistics network in the U.S. that in some cases allows underreporting of the value of Chinese imports or misclassification of the country of origin. To avoid responsibility if they are caught, players often use shell companies as importers of record, a practice that has caught the attention of the U.S. government.

"A lot of Chinese companies realize that they might be targeted for scrutiny, and that it's best not to poke the bear, especially when the administration is not looking very kindly on Chinese imports," said Luke Mathers, a former attorney for the Justice Department's trade office.

Even after the Supreme Court ruling, tariffs remain a central pillar of the Trump administration's foreign and trade policies. The government has continued to collect levies on national security grounds and as penalties for other countries' alleged failures to curb forced labor. Multiple lawsuits have been filed in the Court of International Trade against both types of duties.

The White House is considering another 7.5% tariff on China to counter industrial overcapacity before Chinese President Xi Jinping visits in late September, Bloomberg reported Tuesday, citing unnamed sources.

To ensure importers can be held liable for unpaid tariffs, the White House also issued an executive order strengthening customs enforcement and barring foreign entities from serving as importers of record. Customs brokers say CBP has been requesting more information and documentation on entries more frequently, while shortening the time companies have to respond.

Many Chinese e-commerce companies are also shut out of the refund process because their goods are sent through "informal entries" -- low-value shipments under $2,500 -- rather than the process required for commercial shipments, according to William Jansen, a customs broker at Seko Logistics.

According to a filing by customs with the Court of International Trade, the government had paid out roughly $100 billion in refunds as of the end of July, more than 60% of the $166 billion in tariffs collected via the International Emergency Economic Powers Act and deemed unconstitutional.

After a request portal was set up in April, the customs agency received refund requests for 25.1 million entries of goods up to the end of July.

But not all refund claims can be reviewed because of understaffing, according to some trade experts. And more rebate appeals are expected as CBP updates its system to process imports from the early months of 2025.

The 17 Chinese companies that have received money back are relatively little-known names. The $158.82 million Nikkei Asia calculated they have collected, including interest, accounts for a small fraction of the total.

Still, as a proportion of their earnings, the refunds are significant: The reimbursements to 15 companies are equivalent to between 12% and 58% of their net profits in 2025, while two of the companies recorded losses last year.

Zhejiang Cfmoto Power, a Shanghai-listed maker of motorcycles, off-road vehicles and components, has been the largest beneficiary, receiving $38.6 million. This works out to 15.6% of its annual net profit a year ago, while the company said the actual positive impact will be about 11% after reflecting its U.S. subsidiaries' tax expenses.

Zhejiang Cfmoto Power has been the largest beneficiary among Chinese companies getting Trump tariff refunds, pulling back $38.6 million. (Screenshot from Cfmoto website)

A number of the refund recipients are tech companies, such as Hanshow Technology, which provides digital systems for retailers. Another is Leyard Optoelectronic, a maker of LED video walls and displays. Both Shenzhen-listed companies recovered around $20 million each, or over a third of their respective annual net profits for 2025.

Hitevision, a maker of interactive displays, was the first listed company in China to disclose in early July that it had received a U.S. tariff reimbursement, pulling back over $4 million, more than half of its 2025 net profit.

Another group of beneficiaries comes from the medical and health sector. At least six related companies have received a total of over $40 million. Zhejiang Hua Hai Pharmaceutical, a Shanghai-listed drugmaker focused on cardiovascular, psychiatric and antiviral therapies, received more than $14 million. For Sirio Pharma, a maker of dietary supplements, refunds of almost $12 million are equivalent to about 60% of its net profit in 2025.

More tariff reimbursements may come through transport companies.

DHL announced earlier this month it has received 416 million euros ($487 million) in tariff refunds. This helped push up its net operating cash flow for the first half by more than 20%, to 4.69 billion euros, but Melanie Kreis, the company's chief financial officer, said the money "will have to be passed on to our customers."

The refund process, Kreis said, is "enormously complicated and technical."