US Begins Tariff Refunds; GTRI Urges Indian Exporters to Engage Buyers

The United States has started refunding reciprocal tariffs from April 20, according to the Global Trade Research Initiative (GTRI). Indian exporters are being advised to engage with US buyers to access a share of these refunds. The development follows the invalidation of the tariff framework earlier this year.

According to GTRI, exporters do not have a direct legal route to claim these refunds, as the payments are issued only to US importers. The think tank noted that engagement with buyers will be necessary to benefit from the refunds.

The tariffs, which were imposed from April 2, 2025, impacted exports of several Indian products. The total refund amount is estimated at $166 billion, of which approximately $12 billion is linked to goods imported from India.

To claim refunds, US importers are required to submit detailed claims online, including shipment data, tariff classifications, and proof of duty payments.

The reciprocal tariff regime began at 10 per cent on April 2, 2025, and was subsequently increased. Tariffs on Indian goods rose to 25 per cent by Aug. 7, 2025, and further 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, rendering them legally void and triggering the refund process.

GTRI stated that about 53 per cent of India’s exports to the US, primarily textiles and apparel, were affected by the higher tariffs, making them a major contributor to the refund pool.

“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 added that Indian exporters will not receive refunds automatically. “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.

Srivastava further noted that exporters can explore options such as reopening contracts, incorporating rebate-sharing clauses, requesting price revisions or credit notes, and using invoice and tariff data to demonstrate absorbed costs. “Exporters with stronger bargaining power, especially in textiles and engineering goods, may secure better terms in future orders,” he added.