Tariffs reshuffle tech supply chains

U.S. importers are lining up for tariff refunds just as manufacturers shift more tech production from China to India. (cbp.gov) (cnbctv18.com) U.S. Customs and Border Protection said the first phase of its refund system, called Consolidated Administration and Processing of Entries, will open on April 20, 2026, for certain unliquidated entries and some entries within 80 days of liquidation. Reuters reported companies are preparing claims tied to as much as $166 billion in duties that courts said were collected illegally. (cbp.gov) (usnews.com) The refunds cover tariffs imposed under the International Emergency Economic Powers Act, including “reciprocal” tariffs and levies on China, Mexico and Canada that were linked to fentanyl enforcement. CBS News and Time reported that payouts will not be automatic and that businesses still face filing and eligibility hurdles. (time.com) (cbsnews.com) At the same time, companies have already been moving production. A McKinsey report cited by CNBC-TV18 said India now supplies about 40% of U.S. smartphone demand that had previously been met by China. (cnbctv18.com) That report said the United States replaced nearly two-thirds of goods once sourced from China, worth more than $80 billion, by buying more from India and Southeast Asian nations. It also said Association of Southeast Asian Nations economies replaced about two-thirds of U.S. laptop imports that had previously come from China. (cnbctv18.com) The refund process follows a Supreme Court decision that struck down tariffs imposed under the emergency-powers law, forcing the government to unwind collections while the White House pursues other trade tools. Thomson Reuters said the ruling created immediate refund opportunities even as the administration shifted toward alternative tariff authorities. (thomsonreuters.com) (cbp.gov) Importers say the process could still be messy. Reuters quoted Basic Fun chief executive Jay Foreman saying he was “locked and loaded” for the portal launch, while legal and trade advisers told CBS News and Time that delays, documentation disputes and phased eligibility could slow payments. (usnews.com) (cbsnews.com) (time.com) The result is a split-screen supply chain: companies are trying to recover duties paid on last year’s trade actions while building next year’s electronics output in India and Southeast Asia. April 20 is the next test, when the refund portal opens and importers find out how much of that money can actually be reclaimed. (cbp.gov) (cnbctv18.com)