Indian Exporters Pin Hopes on US Buyer Goodwill 

Indian exporters are cautiously optimistic about recovering a share of $12 billion in potential US tariff refunds following a Supreme Court decision that invalidated Trump-era “reciprocal” duties imposed on imports. The US Customs and Border Protection opened claims processing on April 20, 2026, after a February ruling struck down $166 billion in tariffs enacted under the International Emergency Economic Powers Act.

Indian goods accounted for 53% of the affected exports, primarily textiles, apparel, and engineering products, representing roughly $12 billion of the refund pool. Only American importers can file claims by submitting shipment data and payment proof, with refunds plus interest expected within 60-90 days. Indian exporters hold no direct legal entitlement despite having absorbed tariff costs through pricing discounts during the regime.

FIEO President S.C. Ralhan urged exporters to negotiate commercial arrangements with US buyers to secure their share. Engineering Export Promotion Council Chairman Pankaj Chadha noted that exporters with US subsidiaries acting as importers could claim full benefits, while others must rely entirely on buyer goodwill for any recovery.

Textiles, which faced $4 billion in tariffs, and engineering sectors lead potential recovery prospects. The process could boost order books as exporters regain pricing power lost during the tariff period. Maritime logistics operators anticipate smoother EXIM flows through JNPA and Mundra ports, aided by recent Strait of Hormuz reopening and ULIP digital integration, particularly for wheat export surges under the expanded quota.

Industry leaders emphasise that while the refund opportunity exists, outcomes remain uncertain and entirely dependent on commercial relationships with US counterparts. FIEO plans bilateral discussions to ensure equitable distribution of benefits from the landmark ruling.