US starts refund process for Trump tariffs: Can Indian exporters claim?

The US authorities has rolled retired a strategy to facilitate refunds of implicit $166 cardinal from tariffs introduced by Donald Trump and aboriginal invalidated by the US Supreme Court. In February, the tribunal struck down a wide acceptable of reciprocal tariffs, delivering a important setback to a cardinal pillar of Trump’s economical docket and paving the mode for repayments.On Monday, US Customs and Border Protection announced that the archetypal signifier of its refund-processing level is present operational, allowing importers and customs brokers to statesman filing claims to retrieve the duties they had paid.The bureau had earlier estimated successful March that much than 330,000 importers whitethorn suffice for reimbursements connected duties oregon deposits linked to implicit 53 cardinal shipments. In its archetypal rollout, the level covers astir $127 cardinal successful work payments eligible for physics refunds.

Tariff refunds What US Customs and Border Protection has said

The process to instrumentality reciprocal tariff payments starts connected April 20 done a recently launched online platform, CAPE (Consolidated Administration and Processing of Entries), operated by US Customs and Border Protection.This determination follows a February 20, 2026 judgement by the US Supreme Court, which ruled that tariffs introduced by Donald Trump were unlawful. The tribunal recovered that these duties had been imposed nether the International Emergency Economic Powers Act without capable ineligible backing.

Also Read | Iran has closed Strait of Hormuz completely: What does this mean for India’s crude oil, LPG, LNG supplies?The tariffs impacted a wide scope of exports from countries including India. To person repayments, importers successful the US are required to taxable claims which see shipment details, applicable tariff classifications and impervious of payment. Once approved, these refunds on with involvement are expected to beryllium processed wrong 60 to 90 days. Eligibility is constricted to those who primitively paid the tariffs, chiefly US importers and businesses.The full magnitude to beryllium refunded is estimated astatine astir $166 billion, with astir $12 cardinal tied to Indian goods.The tariff operation began astatine 10% connected April 2, 2025, earlier escalating quickly. Duties connected Indian goods accrued to 25% by August 7, 2025, and further to 50% by August 28, remaining astatine that level until aboriginal February 2026. On February 6, 2026, rates were lowered to 18% pursuing negotiations. However, the Supreme Court’s ruling aboriginal that period nullified the full regime, efficaciously rendering the tariffs void and paving the mode for refunds.

What it means for India

Exporters and extremity consumers are not permitted to record claims directly, though immoderate companies, specified arsenic FedEx, whitethorn opt to walk connected the refunded amounts astatine their discretion.According to Global Trade Research Initiative (GTRI), astir 53% of India’s shipments to the US, which mostly comprises textiles and apparel, were taxable to higher tariffs. This makes them the largest contributors to the refund pool. Of the astir $12 cardinal tied to Indian exports, textiles and apparel are estimated to relationship for astir $4 billion, followed by engineering goods with a akin stock and chemicals contributing astir $2 billion, portion different sectors marque up the remainder.However, what is important to recognize is that these refunds volition not travel straight to Indian exporters. The payments are meant lone for US importers who bore the tariff burden.Also Read | Explained: On mode to 4th largest, however India slipped to 6th fertile & what it means for 3rd largest system dream“Payments spell lone to US importers, and exporters person nary ineligible close to assertion them. Indian exporters, therefore, person nary nonstop ineligible way to assertion refunds,” explains Ajay Srivastava, laminitis of GTRI.Hence, immoderate imaginable betterment of these refunds volition beryllium connected commercialized discussions.

Exporters volition request to actively prosecute with their US counterparts to negociate a stock of the refunded duties, peculiarly successful cases wherever earlier pricing factored successful tariff costs. GTRI explains that this tin beryllium done by reopening contracts, adding rebate-sharing clauses, asking for terms revisions oregon recognition notes, and utilizing invoices and tariff information to amusement however costs were absorbed. “Exporters with stronger bargaining power, particularly successful textiles and engineering goods, whitethorn unafraid amended presumption successful aboriginal orders,” the deliberation vessel says.Industry bodies specified arsenic the Apparel Export Promotion Council, Engineering Export Promotion Council of India and Chemexcil tin besides assistance exporters with guidance connected declaration renegotiation and sector-specific approaches, it adds.