US starts tariff refunds; Indian exporters need to engage with buyers, says GTRI

The US has initiated the process of refunding reciprocal tariffs from April 20, and Indian exporters should proactively engage with American buyers to seek a share of the refunded duties, think tank GTRI said on Tuesday.

The Global Trade Research Initiative (GTRI) said that the engagement will be important as the refunded payments go only to US importers, and exporters have no legal right to claim them.

Indian exporters will have no direct legal route to claim refunds, it said.

The US tariffs, imposed from April 2, 2025, affected export of many Indian products, it said, adding that the total refund is about $166 billion, with roughly $12 billion linked to goods from India.

To get refunds, US importers must file detailed claims online with shipment data, tariff lines and proof of payment.

The reciprocal tariff regime began at 10 per cent on April 2, 2025, and was rapidly escalated. Rates for India rose to 25 per cent by Aug. 7, 2025, and to 50 per cent by August 28, remaining at that level until early February 2026.

On February 20, the US Supreme Court ruling invalidated the entire framework of Trump tariffs, making the tariffs legally void and triggering refunds, it said.

About 53 per cent of India’s exports to the US, mainly textiles and apparel, faced these high tariffs, making them the biggest contributors to refunds.

“Of the estimated $12 billion linked to India, textiles and apparel may account for about $4 billion, engineering goods another $4 billion, and chemicals about $2 billion, with smaller shares from other sectors,” GTRI Founder Ajay Srivastava said.

He said Indian exporters will not get refunds automatically and payments go only to US importers, and exporters have no legal right to claim them. “Any recovery will depend on commercial negotiation. For this, Indian exporters should proactively engage US buyers to seek a share of refunded duties, especially where earlier contracts were priced on a duty-paid basis,” he said.

To benefit, Indian exporters must negotiate with US buyers, Srivastava said, adding they should seek a share of refunds where earlier prices included tariff costs.

“This can be done by reopening contracts, adding rebate-sharing clauses, asking for price revisions or credit notes, and using invoices and tariff data to show how costs were absorbed. Exporters with stronger bargaining power, especially in textiles and engineering goods, may secure better terms in future orders,” he added.