By Anjali Sharma
WASHINGTON – US government on Tuesday has initiated the long-awaited process of refunding billions of dollars in tariffs after the US Supreme Court hit down duties imposed under former President Donald Trump earlier this year.
The move unlocks an estimated $166 billion in refunds, Indian exporters impacted by the tariff regime are unlikely to benefit directly.
According to the Global Trade Research Initiative, Indian exporters do not have a legal mechanism to claim refunds from US authorities.
The refunded duties are payable only to US-based importers who originally bore the tariff burden at the time of entry.
GTRI has advised Indian exporters to proactively engage with their American buyers to negotiate a share of the refunded amounts. “The refunds will flow only to US importers, making commercial negotiations critical for exporters seeking compensation,” the think tank noted.
The tariffs, introduced on April 2, 2025, targeted multiple countries, including India, and significantly impacted outbound shipments.
Of the total $166 billion eligible for refunds, nearly $12 billion is estimated to be linked to imports of Indian-origin goods.
Tariffs on Indian exports began at 10% and were subsequently raised in phases—touched 25% by August 7 and escalated to 50% by August 28, where they remained until early February 2026.
The sweeping tariff framework was invalidated by the US Supreme Court on February 20, rendered the duties legally void.
The refund process came with procedural constraints.
Media reported that US importers must file detailed claims through an online system, including shipment-level data, tariff classifications, and proof of duty payments.
Initial eligibility is restricted to certain “unliquidated” entries or shipments still within 80 days of final customs accounting.
Data from the US Customs and Border Protection shows that over 330,000 importers paid duties across more than 53 million shipments, but only around 56,500 had completed mandatory registration for electronic refunds by mid-April.
The impact on Indian exports was substantial, with 53% of shipments to the US, primarily textiles and apparel, falling under the elevated tariff bracket.
These sectors are expected to account for a significant share of the refund pool, though actual gains for Indian exporters will depend on bilateral negotiations with US buyers.
The development marks a major reversal of Trump-era trade policy, but for Indian exporters, recovery of losses will hinge more on commercial leverage than legal entitlement, media reports stated.
