US to Refund 25% Tariff to India

India has received major relief under the trade deal with the United States. The US administration has reduced the tariff rate from 50% to 18% and has also decided to withdraw the additional 25% penalty tariff imposed due to India’s import of Russian oil.

This decision is expected to provide relief of nearly ₹40,000 crore to Indian businesses. According to official information released by the White House, imports made between 27 August 2025 and 6 February 2026, on which this penalty tariff was imposed, will now be eligible for a refund.

The refund will be issued under the US Customs and Border Protection (CBP) law. However, the exact amount that Indian exporters will receive is not yet clear, as the refund will be paid to American importers. These importers will then negotiate with Indian exporters to share the refunded amount.

Expected Relief of ₹40,000 Crore

According to the US Treasury, the United States collected $79 billion in tariffs on imported goods in 2024. This amount rose to $194 billion in 2025. India accounts for approximately 3.5% of total US imports.

Nearly 60% of US imports from India fall under the tariff bracket. Based on this calculation, the US collected approximately $4 billion (around ₹40,000 crore) as additional tariffs from Indian imports. This amount is expected to be refunded, benefiting Indian exporters.