Trump tariff refunds, largest in US history, start:What it means for Indian businesses and how to claim them

After months of delay, the US government has finally stated refunding billions of dollars collected under Donald Trump’s ‘America First’ tariff policy. The US Customs and Border Protection (CBP) has launched an online portal for businesses to reclaim roughly $175 billion in duties that were ruled unlawful by the US Supreme Court in February this year. Phase-1 is limited to certain unliquidated entries and certain entries within 80 days of liquidation. Importers and their brokers can submit claims, marking the first operational step towards returning billions of dollars collected under now-invalid duties. Companies must file declarations identifying goods on which they paid tariffs that were subsequently ruled unconstitutional. Approved claims are expected to be refunded within 60–90 days, though officials caution that technical and procedural hurdles could extend timelines. The government plans to issue payments in phases, prioritising more recent tariff entries. Court ruling triggers refunds On 20 February, the US Supreme Court ruled 6–3 that Trump exceeded his constitutional authority by imposing sweeping tariffs last April under a 1977 emergency powers law, citing the US trade deficit as justification. The court said the move encroached on Congress’s authority to levy taxes. While it did not specify a refund mechanism, the US Court of International Trade later ruled that companies affected by tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are entitled to reimbursement. How large is the refund effort, and who is affected? The refund effort is expected to be the largest tariff repayment in US history. Court filings cited by multiple reports indicate that more than 330,000 importers paid roughly $166 billion in tariffs across more than 53 million shipments. However, not all payments qualify immediately. The first phase is limited to entries where duties were estimated but not finalised, or those within 80 days of final accounting. As of mid-April, more than 56,000 importers had registered for CBP’s electronic payment system, making them eligible to receive about $127 billion, including interest. Will customers get refunds? Consumers also bore much of the tariff burden as businesses passed on higher costs. However, it remains unclear whether they will receive any refunds. Some logistics firms, including FedEx and Costco, have indicated they may pass on refunds where duties were collected directly at delivery. Meanwhile, broader litigation over tariff-related repayments is expected to continue. Which tariffs are eligible? Only tariffs imposed under the International Emergency Economic Powers Act (IEEPA) qualify for refunds, and even then, eligibility is limited.
These account for roughly 63% of all IEEPA duties. Will Indian exporters get any refund from the US? India was among the first countries hit by Trump’s ‘reciprocal’ tariffs announced on 2 April 2025. With additional penalties linked to purchases of Russian oil, the effective tariff rate rose to 50%, the highest imposed on any country. In January this year, Trump said the rate would be reduced to 18% after India and the US finalised a trade deal. But the key question remains: Will the ruling by the US Supreme Court striking down these tariffs benefit Indian exporters? What strategy can Indian importers deploy to get back already paid tariffs? According to the global think tank, Global Trade Research Initiative (GTRI), founder, Ajay Srivastava, about $10–12 billion of tariff refunds are linked to goods sourced from India. As, currently, there are no defined policy for Indian expoters to claim refunds, they should instead negotiate effectively with the US buyers who would receive the refunds. So, any gains for Indian exporters depend on negotiations with US buyers. Impact on Indian exports Although Indian companies will not receive refunds, they were affected by the tariffs. Higher duties made Indian goods less competitive in the US, India’s largest export market. CAPE system to handle claims Refunds will be processed through the Consolidated Administration and Processing of Entries (CAPE) system, accessible via CBP’s Automated Commercial Environment (ACE) portal. Only importers of record and authorised customs brokers can file claims. They must register, submit bank details, and file CAPE declarations to streamline processing of valid refund requests tied to IEEPA duties. The CBP said it has issued guidance to help businesses prepare documentation and navigate the system. Accuracy key as system goes live Experts say precise documentation will be critical to avoid rejected claims. Even minor errors in entry details could delay or invalidate submissions. High demand could also strain the system in its early days, raising the likelihood of technical disruptions. Companies are advised to track filings carefully and ensure all data is accurate and complete. Businesses seek relief, fear delays Smaller firms, in particular, are hoping refunds will ease cash flow pressures after absorbing tariff costs. However, concerns remain over processing times. Some businesses say lengthy delays could blunt the financial relief the refunds are meant to provide, especially for firms that chose not to pass on higher costs to customers.
Uncertainty remains Officials have warned that the process could be complex and prolonged. Further legal or administrative action could affect both the size and timing of refunds. For now, the launch of the CBP portal marks the first concrete step in unwinding one of the most expansive tariff regimes in recent US history.