Federation of Indian Exports Organisations (FIEO), the apex exporters’ body in India, on Wednesday said it has asked its members to engage with US buyers to seek a share of tariff refunds, as the US has begun reimbursing reciprocal tariffs from April 20.
FIEO President S C Ralhan said Indian exporters have no legal claim over these refunds, as they are being paid only to US businesses.
“But if an Indian exporter has a good relationship with his or her US buyer, she may get some share,” he said.
In a report, think tank Global Trade Research Initiative (GTRI) said such engagement will be crucial since the refunded amounts go solely to US importers, leaving exporters with no legal entitlement to claim them.
Indian exporters, therefore, have no direct legal route to access these refunds.
An industry official from the leather sector said companies are already taking up the matter with US importers.
“We are talking to our buyers on this,” a leather exporter said.
The tariffs, imposed from April 2, 2025, affected exports across a wide range of Indian products.
According to GTRI, total refunds are estimated at about USD 166 billion, of which roughly USD 12 billion is linked to goods imported from India.
To claim refunds, US importers must file detailed online submissions, including shipment data, tariff classifications and proof of payment.
The reciprocal tariff regime began with a 10 per cent levy on April 2, 2025, and was quickly scaled up. Rates on Indian goods rose to 25 per cent by August 7, 2025, and to 50 per cent by August 28, where they remained until early February 2026.
On February 20, a US Supreme Court ruling struck down the entire framework of Trump-era tariffs, rendering them legally void and triggering the refund process, the report said.
About 53 per cent of India’s exports to the US—mainly textiles and apparel—were subject to these steep tariffs, making them the largest contributors to the refund pool.
“Of the estimated USD 12 billion linked to India, textiles and apparel may account for about USD 4 billion, engineering goods another USD 4 billion, and chemicals about USD 2 billion, with smaller shares from other sectors,” GTRI Founder Ajay Srivastava said.
He reiterated that Indian exporters will not receive refunds automatically, as payments are made only to US importers and exporters have no legal claim over them.
He suggested exporters reopen contracts and use invoices and tariff data to demonstrate how costs were absorbed.
