Sectors most affected include textiles and apparel, engineering goods and chemicals.
US Tariff Refund Rollout Begins After Court Ruling, India Exporters Face Key Negotiation Challenge
The United States has started implementing a refund mechanism for tariffs collected under its earlier reciprocal duty framework, a move that could affect billions of dollars in global trade, according to a trade think tank.
The development follows a February ruling by the United States Supreme Court that invalidated the tariff structure introduced in 2025, making the duties legally void and triggering reimbursement procedures for importers who had paid them.
Under the process, refunds will be issued only to U.S. importers rather than foreign exporters, meaning Indian companies will need to rely on commercial negotiations to recover any share of the amounts, the Global Trade Research Initiative (GTRI) said.
The think tank estimates that about 166 billion dollars in total tariff refunds may be involved globally, with roughly 12 billion dollars linked to Indian exports. Sectors most affected include textiles and apparel, engineering goods and chemicals.
GTRI founder Ajay Srivastava said exporters from India have no direct legal claim over the refund amounts, as the system is designed to reimburse only the original importers who paid the duties.
Importers in the United States must submit detailed claims online, including customs records, tariff classifications and payment proof, before refunds are processed. Srivastava added that any redistribution of refunded duties will depend entirely on private agreements between exporters and buyers rather than legal provisions.
