The US Customs and Border Protection announced on Monday that the first phase of its refund-processing platform is now operational, allowing importers and customs brokers to begin filing claims to recover the duties they had paid.
More than 56,000 registered importers can now begin filing claims through a new federal portal to recover a share of $127 billion in tariff refunds, including interest. This follows the Supreme Court’s landmark 6-3 ruling on February 20, which struck down President Donald Trump’s sweeping import tariffs as unconstitutional. For businesses that absorbed billions in unexpected costs last year, Monday is the day they have been waiting for.
Trump’s tariff flip-flops
Trump initially introduced 10% tariffs on Indian exports to the US on April 2 last year. The duties were later hiked to 25% in August, and then to 50% over India’s imports of Russian oil. In February this year, the tariffs were reduced to 18% following negotiations and a trade deal. However, the subsequent ruling by the Supreme Court nullified the entire regime.According to the Global Trade Research Initiative (GTRI), around 53% of India’s shipments to the US, which largely comprise textiles and apparel, were subject to the higher tariffs. Indian shrimp and textile companies derive a significant portion of their revenue from exports to the US. Earlier last year, the stocks had declined sharply following Trump’s tariff flip-flops. However, the latest refunds and hopes for subsequent demand recovery are boosting the stocks today.
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Textile, shrimp stocks
Gokaldas Exports shares surged around 7% to trade at Rs 769.5 apiece on Tuesday, while Arvind shares gained around 3%. Avanti Feeds and Apex Frozen shares rallied more than 6% each, while Coastal Corp shares gained around 5%.
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It is important to note that Indian exporters will not be receiving any of the tariff refunds – they will be received by their American clients who imported their goods in the US.
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