Indian exporters receive over $1B in tariff refunds from US
What's the story
Indian exporters have started receiving refunds of duties paid during Donald Trump's presidency, with over $1 billion already reimbursed. The refunds are a result of the US Customs and Border Protection's (CBP) decision to process reimbursements. The move comes after a US Supreme Court ruling that struck down Trump's emergency tariffs as illegal.
Legal decision
US Supreme Court ruling on Trump's tariffs
On February 20, 2026, the US Supreme Court ruled that Trump's global tariffs were illegal.
The court found that the International Emergency Economic Powers Act (IEEPA) does not give the President unilateral authority to impose tariffs.
It also noted that only Congress has the constitutional power to levy taxes and regulate international trade.
Following this landmark ruling, it ordered refunds for duties collected under these invalidated tariff regimes.
Sectoral impact
Refunds to benefit various sectors
The refunds are particularly significant for Indian exporters who sent goods worth nearly $72 billion to the US during the tariff period.
Textiles, gems and jewelry, and seafood were among the most affected sectors with additional duties.
Frozen seafood exports were nearly $2 billion, while textile exports exceeded $1 billion during this period.
Refund procedure
Refunds only to importer of record in US
As per CBP rules, refunds are made only to the Importer of Record in the US.
The Indian exporter cannot directly claim the refund and has to depend on the US importer to pass on the recovered amount.
As of June 29, CBP had processed $71 billion in tariff refunds globally but did not disclose country-wise figures.
Business prospects
Indian exporters not getting payments uniformly
Saurabh Agarwal from EY said the IEEPA duty refund program is a significant opportunity for businesses that paid these tariffs.
He added that CBP's guidance provides clarity by identifying various categories of refund claims and noting that accepted claims are generally processed within about 90 days.
However, industry executives have warned that Indian exporters are not getting payments uniformly as refunds legally belong to US importers.
Claim precautions
Expert advice on filing refund claims
Rahul Shekhar from Nangia Global advised businesses to be cautious while filing refund claims.
He said the refund process is likely to be subject to heightened scrutiny by CBP.
Refund claims should only be filed by the lawful Importer of Record or authorized customs broker and must be supported by accurate customs declarations, genuine import entries, and complete documentation.