Navigating Tariff Turbulence: Indian Exporters Seek US Refunds

The apex exporters' body, Federation of Indian Export Organisations (FIEO), has advised its members to engage with US buyers in a bid to claim a share of the refunded tariffs as the US initiates refunds from April 20. While Indian exporters have no legal entitlement to these refunds, good relationships with US buyers may help secure a portion, according to FIEO President S C Ralhan.

A report by the Global Trade Research Initiative (GTRI) highlights that refunded payments are allocated exclusively to US importers, leaving Indian exporters without a direct legal pathway to claim refunds. The tariffs, imposed from April 2, 2025, affected numerous Indian exports. Of the estimated USD 12 billion linked to India, textiles and apparel account for USD 4 billion, engineering goods for another USD 4 billion, with chemicals contributing about USD 2 billion.

With tariffs having escalated to 50% by late August 2025, the US Supreme Court's ruling on February 20 rendered the Trump-era tariffs void, triggering refunds. Exporters are encouraged to renegotiate contracts and present invoices with tariff data to highlight the absorbed costs to share in the refunds.

(With inputs from agencies.)