How Indian Exporters Can Navigate the US Tariff Refunds: Insights and Strategies

Indian Exporters Urged to Connect with US Buyers for Tariff Refunds

New Delhi: The Federation of Indian Export Organisations (FIEO) has advised its members to engage proactively with American buyers to potentially secure a portion of the tariff refunds, as the US has commenced the refund process for reciprocal tariffs starting April 20.

FIEO President S C Ralhan emphasized that Indian exporters do not possess a legal entitlement to these refunds, which are exclusively available to US companies.

"However, if an Indian exporter maintains a strong rapport with their US buyer, they might receive a share of the refunds," he noted.

A report from the Global Trade Research Initiative (GTRI) highlighted the necessity for Indian exporters to connect with US buyers, as the refunds are directed solely to US importers, leaving exporters without a legal claim.

Indian exporters lack a direct legal pathway to pursue these refunds.

An official from the leather industry mentioned that discussions with US importers regarding this issue are underway.

"We are in talks with our buyers about this matter," stated a leather exporter.

The US tariffs, which were implemented on April 2, 2025, have significantly impacted the export of various Indian goods.

According to GTRI, the total refund amount is estimated at USD 166 billion, with approximately USD 12 billion associated with Indian products.

To obtain refunds, US importers must submit detailed claims online, including shipment data, tariff lines, and proof of payment.

The reciprocal tariff system began with a 10 percent levy on April 2, 2025, which escalated rapidly, reaching 25 percent by August 7, 2025, and 50 percent by August 28, remaining at that level until early February 2026.

On February 20, a ruling by the US Supreme Court invalidated the entire framework of the Trump tariffs, rendering them legally void and initiating the refund process.

Approximately 53 percent of India's exports to the US, primarily textiles and apparel, were subjected to these elevated tariffs, making them the largest contributors to the refunds.

"Of the estimated USD 12 billion linked to India, textiles and apparel may represent around USD 4 billion, engineering goods another USD 4 billion, and chemicals about USD 2 billion, with smaller contributions from other sectors," stated GTRI Founder Ajay Srivastava.

He further clarified that Indian exporters will not receive refunds automatically, as payments are directed solely to US importers, leaving exporters without a legal claim.

He recommended that exporters revisit contracts and utilize invoices and tariff data to demonstrate how costs were absorbed.