New Delhi: Indian exporters may be linked to nearly $12 billion worth of tariff refunds announced by the United States, but they won’t see that money automatically. Instead, experts say the only way to benefit is through active negotiation with American buyers.

According to the Global Trade Research Initiative (GTRI), the US has begun refunding tariffs from April 20, following a major court ruling. However, the refunds are being issued only to US importers, leaving exporters without any direct legal claim.

The now-invalidated tariff regime, introduced on April 2, 2025, had significantly raised duties on Indian goods. Rates climbed from 10% initially to as high as 50% by August 2025, impacting a large portion of exports.

A ruling on February 20 by the US Supreme Court declared the tariff framework invalid, making all collections legally void and triggering refunds estimated at $166 billion globally.

Out of this, about $12 billion is tied to Indian exports, with major contributions from: Textiles and apparel: $4 billion, engineering goods: $4 billion, chemicals: $2 billion.

Notably, nearly 53% of India’s exports to the US were affected, making this one of the largest trade disruptions in recent years.

Why Indian exporters won’t get paid automatically

Despite the massive refund pool, exporters face a critical limitation.

Indian exporters will not get refunds automatically and payments go only to US importers, and exporters have no legal right to claim them said GTRI Founder Ajay Srivastava.

This means any financial recovery depends entirely on commercial agreements, not policy or legal entitlement.

How exporters can still recover losses

Experts recommend that Indian businesses act quickly and strategically.

"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," Srivastava said.

To improve their chances, exporters can: 

  • Reopen past contracts
  • Negotiate rebate-sharing clauses
  • Request price revisions or credit notes
  • Use invoices 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.

For Indian exporters, especially in textiles and engineering, this is a rare opportunity but one that requires swift action and negotiation skills.

With PTI inputs