BYD Sues US Over Trump Tariffs, Seeks Full Refund

Chinese automaker BYD has sued the U.S. government, challenging tariffs imposed under President Donald Trump and demanding a full refund of all levies paid since April 2025.

In a lawsuit filed January 26 in the U.S. Court of International Trade, four BYD U.S. subsidiaries argue the administration overstepped its authority by using the International Emergency Economic Powers Act (IEEPA) to impose what they say are unlawful border taxes.

The filing notes that the statute “does not employ the word ‘tariff’ or any term of equivalent meaning.”

BYD said it filed the suit independently to preserve its right to recover tariffs already paid, plus interest.

While the complaint does not specify a dollar figure, it seeks to void all IEEPA-based duties imposed over the past year.

The case marks the first legal challenge by a Chinese automaker to U.S. tariffs, following similar lawsuits from thousands of global companies with American operations that have questioned Trump’s use of emergency powers to impose trade barriers.

Though BYD does not sell passenger cars in the U.S., it has a significant American footprint, producing buses and commercial vehicles and supplying batteries, energy storage systems, and solar panels.

BYD North America employs about 750 workers at its truck plant in Lancaster, California, according to the company.

Trump has repeatedly warned that Chinese automakers pose a threat to the U.S. auto industry, while also signaling openness to foreign manufacturers that build vehicles domestically.

The lawsuit comes as the U.S. Supreme Court considers a separate challenge to the tariffs’ legality. U.S. Trade Representative Jamieson Greer said last week the court is proceeding cautiously due to the “enormous” stakes involved.