US President Donald Trump had announced to impose tariffs on all countries around the world on April 2, 2025. First increased the tariff by 10% then by 15%, 25%, 50%, 100% and 150%. India also got punished with this tariff. About 166 billion dollars i.e. 15 lakh crore rupees were earned from this tariff, but a decision of the US Supreme Court changed the whole game. The Supreme Court termed the tariff as baseless and ordered to return the money along with interest. So now will Trump have to return more money and will India get its share or not? You will know in the explainer…

Question 1: Under what compulsion is Donald Trump returning the money?

answer: In the US, the Trump government had imposed large-scale tariffs, calling the trade deficit a national emergency, but the US Supreme Court declared these tariffs unconstitutional in a 6-3 decision on February 20, 2026. The court said that the government misused the 1977 International Emergency Economic Powers Act and interfered with the power of Parliament. Due to this the entire tariff system got cancelled.

Now the US Customs and Border Protection Department has started the withdrawal process from April 20, 2026. Overall, about 166 billion dollars i.e. about Rs 14 lakh crore are to be returned. This money was paid by more than 3 lakh 30 thousand importers on more than 5 crore 30 lakh shipments. Interest will also be added to this. In the initial phase, $127 billion is ready to be returned electronically.

Question 2: Which people or companies will get this refund money?

answer: The refund money will not be distributed on the basis of any particular country list. This money will be available only to those American importers who had paid the tariff directly to the government. These importers could order goods from any country in the world. Out of the total $166 billion, about $12 billion is related to tariffs imposed on goods coming from India, but this money will not go directly to Indian exporters. This will come to the accounts of American importers only. No foreign company or exporter can make any claim on its own.

Question 3: What is the complete payment process and how much time will it take?

answer: The refund process is completely digital and clean. The US Customs Department has created a new system called the Integrated Entry Administration and Processing System. It is integrated into the old Automated Commercial Environment platform.

• First of all, American importers or their customs brokers are required to register their names in the electronic payment system of the department. Then claim will have to be made on the new portal. In this, complete details of the shipment, tariff category, payment certificate and entry number all have to be given. After the claim is approved, the money along with interest comes into the bank account in 60 to 90 days.
• This process will be step by step. In the first phase, only recent cases or those which have been counted within 80 days are included. Old payments will come in a later phase.
• The entire work can take several months or years because there are 3 lakh 30 thousand importers and crores of documents. If there is any mistake in the claim or there is a deficiency in the rules, then the time may increase further.

Question 4: Will the full amount be refunded or will there be some deduction?

answer: Yes, the entire money will be refunded along with the original tariff amount and interest. The US Supreme Court has clearly said that the wrongly collected tax has to be refunded in full. There will be no deduction, but it will be available only to those importers who made the payment themselves. Common consumers or small shopkeepers will not get anything directly. Although some big companies like FedEx may give some share to customers as per their policy, it is not legally required.

Question 5: When and how will India get its share of the money back?

answer: India is involved in this process, but only because part of the $12 billion is related to tariffs imposed on goods coming from India. Still, Indian exporters will not get even a single penny directly. Ajay Srivastava, founder of Global Trade Research Initiative, says that payments go only to American importers and exporters have no legal rights. Therefore, Indian companies can only benefit from trade negotiations. Such as by reopening old contracts, adding a condition for sharing discount, increasing the price or asking for a credit note.

Exporters who have strong bargaining power, especially those in textiles and engineering goods, may get better terms in upcoming orders. Organizations like Apparel Export Promotion Council, Engineering Export Promotion Council and Chemexil are providing guidance to exporters.

Indian exporters should immediately contact their US buyers and negotiate share sharing by showing invoices and tariff data. Sectors where bargaining power is strong may benefit, but companies with weak ones may benefit nothing. Overall, this is not direct cash for Indian exporters, but an opportunity for negotiation.

If negotiations go well, incoming orders may become cheaper and profits may increase. But if American importers keep the entire money in their pockets, then Indian companies will not get any relief. The process has just begun, so new news may come every week.