New Delhi: The U.S. is starting to refund tariffs that were imposed on Indian imports from April 20, 2025. The Global Trade Research Initiative (GTRI) suggests that Indian exporters need to actively engage with American buyers for a chance to benefit from these refunds.
These refunds are only eligible for U.S. importers, meaning Indian exporters can’t claim them directly. This makes it crucial for exporters to communicate with their U.S. counterparts. GTRI highlighted that about $166 billion is being refunded in total, with around $12 billion linked to Indian goods.
The tariffs started at 10% but quickly increased, reaching 25% by August 2025 and spiking to 50% by late that month. These tariffs were deemed legally void following a U.S. Supreme Court ruling on February 20, 2026, paving the way for refunds.
A significant 53% of India’s exports to the U.S., particularly textiles and apparel, were affected by these high tariffs. Ajay Srivastava, GTRI’s founder, estimates that textiles and apparel alone could see refunds of about $4 billion, with engineering goods and chemicals contributing similar amounts.
To secure refunds, Indian exporters need to negotiate with U.S. buyers. They should explore options like reopening contracts, adding rebate-sharing clauses, or requesting price adjustments. Making a strong case with invoices and tariff data will help strengthen their position, especially for those in the textiles and engineering sectors.
Interestingly, recent surveys indicate that nearly 70% of U.S. importers are open to renegotiating terms based on refunded tariffs, showing a willingness to collaborate. The outcome of these discussions could significantly affect the financial landscape for Indian exporters moving forward.
It’s vital for Indian businesses to adapt and engage strategically during this refund process. By building stronger partnerships with U.S. buyers, they could turn these challenges into opportunities for growth.
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GLOBAL TRADE RESEARCH INITIATIVE, INDIAN EXPORTERS, US TARIFF REFUND, INDIA US TARIFF REFUND GTRI, US STARTS TARIFF REFUNDS; INDIAN EXPORTERS NEED TO ENGAGE WITH BUYERS: GTRI
