New Delhi/Mumbai: Indian exporters across sectors such as tyres, tractors and apparel are scrambling to figure out how they can recover the Trump administration’s hiked tariffs on shipments to the US after its top court struck them down as illegal, paving the way to for potentially significant refunds. However, uncertainty over eligibility, timelines and a fresh federal appeal has left them awaiting clarity on the quantum and status of refunds, if at all they come.
While companies, including Ceat, Balkrishna Industries, CNH India and Gokaldas Exports, have expressed hope of recovering some of the duties paid, executives and trade lawyers said the refund process remains complex, with key details yet to be clarified by the US even as Trump administration mounts a legal challenge.
After the US Supreme Court had in February 2026 ruled that President Donald were illegal, the US Customs and Border Protection Department launched an online portal on 20 April to process refunds of companies who had paid them since the levies had been rolled out in April 2025.
At stake is the massively hiked customs duty paid by Indian companies during April 2025 and February 2026, when the revised tariffs of 10% were imposed. They are now eligible to claim the difference between the earlier tariff rates of around 3-15% and the reciprocal tariffs of 50%.
Trump administration’s appeal
Even as several businesses have started getting their refunds, the Trump administration announced on Friday that it plans to challenge the refund order, bringing fresh uncertainty to the repayment process.
To be sure, the refunds only apply to the reciprocal tariffs imposed by the Trump administration on countries in April, which were separate from tariffs imposed on many auto and auto ancillary players under the Section 232 of the US Trade Expansion Act, 1962 in March.
India’s exports to the US were taxed at 27% under the reciprocal tariff regime, which was later raised to 50% amid differences between the two countries over New Delhi’s import of Russian oil. Since the US Supreme Court ruling, a flat 10% tariff has been imposed on all countries.
“The legal entitlement to refunds is firmly established, given the court’s clear holding. However, practical delays cannot be avoided due to the sheer volume of claims and certain importers not having established the requisite digital payment infrastructure,” said S.R. Patnaik, partner (head – taxation) at Cyril Amarchand Mangaldas.
In their commentary with analysts and investors, tyre makers Ceat and Balkrishna said they are following up on the US tariff refund process that could help in the return of some payouts.
“In the US, we are importer on record. So whatever process is required, we have already filed. But as of now, we have not received anything,” Ravi Joshi, deputy chief financial officer at Balkrishna Industries, told analysts and investors in a 9 May earnings call.
The refund has wider implications. “As a fair practice, obviously, we are supposed to pass back part of it, what was recovered from the customers.” Joshi added. While the company does not detail the exact percentage of its sales coming from the US, the Americas region accounted for 13% of its total sales in FY26.
Ceat said off-highway tyres are potentially eligible for refunds, and that the company’s recently-acquired brand derived nearly one-third of its business from the North American market.
“US tariffs on on-road tires, which is PC/UV and truck bus radial, our tariffs continue to stay at 25% incremental, plus the original tariff of around 4%. In OHT, it has been reduced from 50% now to 10%. And as we know, there’s a court order in terms of refunding this tariff. So we are following up to see what happens in OHT,” said Arnab Banerjee, managing director and chief executive at Ceat, during the company’s earnings call on 29 April.
In its earnings call on 25 May, apparel maker Gokaldas Exports noted that many brands had started applying for refunds, but it remains unclear whether they will pass back the benefit to suppliers who had given discounts to minimize impact of high tariffs.
“reversal portal has opened in the US. Many brands have started applying for tariff refunds. But it is unknown whether some of those tariff refunds will be passed back to the supply chain,” Sathyamurthy Annamalai, chief financial officer at Gokaldas Exports, said during the call.
The apparel company had offered net discounts of ₹90 crore, or about 2% of its annual revenue for FY26 revenue to customers to reduce the burden of tariffs, as per the management commentary during the earnings call.
With a looming legal challenge by the Trump administration, experts suggest there is more uncertainty on the horizon for companies seeking refunds.
“The refund process remains subject to further judicial proceedings and administrative implementation,” said Shashi Mathews, partner at CMS INDUSLAW. “Accordingly, although eligible importers have a strong legal basis to seek refunds, the timing and mechanics of the refund process may continue to evolve, depending on the outcome of any future challenge to the SC ruling and related court direction.”