BYD Sues U.S. Government, Seeks Refund Over Trump’s Auto Tariffs

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Chinese automaker BYD has filed a lawsuit against the U.S. government, challenging President Donald Trump’s use of broad emergency powers to impose sweeping auto-related tariffs and requesting a refund for all levies it has paid since April last year, according to court documents.

The case, filed at the U.S. Court of International Trade on January 26, is the first legal challenge brought by a Chinese carmaker over the tariffs. It comes as thousands of global companies with U.S. operations have launched similar complaints, questioning Trump’s reliance on the International Emergency Economic Powers Act (IEEPA) to impose border taxes.

In its filing, BYD’s four U.S. subsidiaries argue that IEEPA does not authorize tariffs, noting that the law does not include the word “tariff” or any equivalent term.

A separate and closely watched case is also underway, with the U.S. Supreme Court expected to rule on the legality of the tariffs. U.S. Trade Representative Jamieson Greer said last week that the court was moving cautiously due to the “enormous” stakes involved.

BYD said it filed its own lawsuit to preserve its ability to recover tariffs already paid.

Although BYD does not sell passenger cars in the United States, its U.S. business includes buses and commercial vehicles, batteries, energy storage systems and solar panels. BYD North America employs around 750 workers at its truck plant in Lancaster, California, according to the company’s website.

Trump has repeatedly argued that Chinese-made cars threaten the future of the U.S. auto industry, though he has also said he would welcome Chinese automakers if they build vehicles inside the United States.

The case is listed as No. 26-00847 at the U.S. Court of International Trade in New York.

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