Whalesbook
How Indian Exporters Can Get Refunds
Indian exporters have the potential to recover about half of the $12 billion in U.S. tariffs paid, a sum that could reach $6 billion. However, this recovery is far from assured and hinges significantly on existing commercial relationships between Indian firms and their U.S. importer partners. Without strong trade ties, reclaiming these funds will be much harder.
Supreme Court Ruling Enables Tariff Repayments
The legal pathway opened on February 20, 2026, when the U.S. Supreme Court ruled that certain tariffs imposed by the Trump administration under the International Emergency Economic Powers Act were unlawful. U.S. Customs and Border Protection began processing these refunds via its CAPE system on April 20, 2026. It's important to note that only the U.S. importers who initially paid the tariffs are legally eligible to receive the money back from the government. Indian exporters have no direct claim and must depend on successful negotiations with their U.S. buyers.
Sectors Facing Impact and Future Trade Tensions
Key Indian export sectors like textiles and apparel, engineering goods, and chemicals are most affected by these tariffs. Globally, the Global Trade Research Institute estimates total refunds could reach $166 billion, with goods linked to India making up around $12 billion. Meanwhile, trade discussions between India and the U.S. are ongoing, with potential for new tariffs under Section 301 of the Trade Act of 1974. This uncertainty highlights the urgency for both nations to resolve outstanding trade issues.