A-Share Companies Ride Wave of IEEPA Tariff Refunds After US Supreme Court Rules Tariffs Unconstitutional! Guizhou Tyre Receives 81.36 Million RMB in Single Payout

On Thursday last week (June 6), Guizhou Tyre announced that its overseas wholly-owned subsidiary, NACTR, has been receiving successive refunds of tariffs and interest under the US International Emergency Economic Powers Act (IEEPA) 'reciprocal tariffs'. The total amount refunded is $11.983 million, comprising $11.5266 million in principal tariffs and $0.4564 million in interest, equivalent to approximately RMB 81.3587 million. This amount will be recorded in the 2026 fiscal year's current period earnings and will not be retroactively applied to prior years.

This refund is not a standard tax incentive but part of a historic reversal following the US Supreme Court's ruling that IEEPA did not authorize the imposition of broad-based tariffs. On February 20, the Supreme Court ruled 6-3 in Learning Resources v. Trump that IEEPA does not grant the president authority to impose large-scale tariffs, rendering the tariffs levied under the Trump administration legally invalid from the outset.

On March 4, the US Court of International Trade ordered US Customs to issue refunds, and the CAPE consolidated refund system officially launched on April 20. The first round of payments began around May 11.

According to court documents disclosed last Tuesday (June 4), US Customs has already refunded approximately $100 billion—about 60% of the $165 billion collected under IEEPA—with over $128 billion in refund claims under review, covering around 330,000 importers. This constitutes the largest tariff refund in US history.

Since last month, several A-share listed companies have received refunds: Dongjian Technology received $3.3927 million (RMB 23.04 million), Kono Health $4.5493 million, Honghe Technology’s US subsidiary $4.072 million, and Huahai Pharma’s Shouke Health $14.2296 million. Companies such as Greebo and Huawei New Energy are also advancing their refund applications.

China Century Securities noted that companies with US subsidiaries or independent brands can directly receive refunds, boosting cash flow. OEM manufacturers benefit indirectly from increased restocking by importers and reduced pricing pressure, easing sentiment across the export supply chain.

It is important to note that refunds are limited to the unconstitutional portions of IEEPA tariffs and do not include Section 301, Section 232, or anti-dumping and countervailing duties. These are non-recurring gains and do not reflect core business performance. While Guizhou Tyre’s one-time RMB 81.36 million gain will boost its annual profit, its core operations must be evaluated separately.

This flood of billion-dollar refunds is reshaping US-China trade accounting, but legal reversals and administrative workarounds—such as invoking Section 122 of the Trade Act—remain ongoing risks.