Daijiworld Media Network - New Delhi
New Delhi, Apr 22: Indian exporters are unlikely to receive a direct share of the massive US tariff refunds, but the rollback of duties is already improving their pricing power and boosting export prospects, according to recent reports.
The United States has initiated a refund process worth nearly $166 billion after its Supreme Court struck down tariffs imposed under Donald Trump’s administration. While an estimated $10–12 billion of these refunds is linked to Indian goods, the payments will go primarily to US importers who had originally paid the duties.
Experts note that Indian exporters have no automatic legal claim to these refunds. Instead, they may benefit indirectly through negotiations with American buyers. In cases where Indian firms have subsidiaries acting as importers in the US, they could receive refunds directly, but such instances are limited.
A significant portion of India’s exports to the US—about 53 per cent—was impacted by the earlier tariff regime, particularly sectors such as textiles and apparel, engineering goods, and chemicals. Of the estimated India-linked refunds, textiles account for roughly $4 billion, engineering goods another $4 billion, and chemicals about $2 billion.
Despite the lack of direct payouts, the removal of steep tariffs—some of which had risen as high as 50 per cent—has improved the competitiveness of Indian products in the US market. This has enhanced exporters’ bargaining power, allowing them to negotiate better prices and terms in fresh orders.
Industry bodies say exporters can now seek higher prices or partial compensation from US buyers, especially where tariff costs were previously absorbed through discounts. This shift is expected to improve margins and revive order flows across key sectors.
The easing of tariff pressures is also translating into stronger demand, particularly in labour-intensive sectors like garments, where buyers are returning after a period of subdued activity.
Overall, while Indian exporters may miss out on direct financial refunds, the broader trade reset is creating a more favourable environment, with improved pricing power, better margins, and a gradual recovery in export demand.