FIEO Advises Exporters To Negotiate Tariff Refunds With US Buyers

(MENAFN- KNN India) New Delhi, Apr 22 (KNN) India's apex exporters' body Federation of Indian Export Organisations (FIEO) has advised exporters to engage with their US buyers to negotiate a share of tariff refunds as the United States has started accepting claims for reimbursement of now-invalidated duties from April 20.

FIEO President S C Ralhan said Indian exporters have no legal claim over these refunds, as the payments are being made exclusively to US importers, reported Business Standard.

“While exporters have no legal right, those with strong relationships with their buyers may be able to secure a share,” he noted.

No direct legal route for exporters

According to a report by the Global Trade Research Initiative (GTRI), Indian exporters cannot directly claim refunds, making engagement with US partners crucial.

The think tank emphasised that refunds will only be processed for US importers who file claims with detailed shipment data, tariff classifications and proof of payment.

Industry participants have echoed this approach. Exporters, including those from the leather sector, said discussions with US buyers are already underway to explore possible sharing arrangements.

USD 166 billion global refunds; USD 12 billion linked to India

GTRI estimates the total refund pool at around USD 166 billion, with approximately USD 12 billion linked to Indian exports. A significant portion of this relates to sectors such as textiles and apparel, engineering goods and chemicals.

GTRI Founder Ajay Srivastava said exporters should consider reopening contracts and use invoice and tariff data to demonstrate how much of the tariff burden they absorbed, strengthening their case in negotiations.

Background: tariff regime and reversal

The reciprocal tariff regime began on April 2, 2025, starting at 10 percent and rising sharply to 50 percent by late August 2025 for Indian goods. These tariffs affected nearly 53 percent of India's exports to the US, particularly labour-intensive sectors like textiles.

However, on February 20, 2026, the US Supreme Court struck down the tariff framework, declaring it invalid and paving the way for refunds.

Way forward for exporters

With no automatic benefit flowing to exporters, industry bodies stress that commercial negotiations will be key. Strong buyer relationships, transparent cost-sharing discussions and proper documentation are expected to play a decisive role in determining whether Indian exporters can recover part of the tariff burden.

The development underscores the growing importance of strategic buyer engagement in navigating global trade disruptions and policy reversals.

(KNN Bureau)

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