BYD sues US Govt over Trump-era tariffs, seeks refund of levies

Chinese automaker BYD has taken legal action against the U.S. government, challenging President Donald Trump’s move to impose tariffs using broad executive powers and seeking a refund of all levies it has paid since last April, according to court filings.

The suit marks the first time a Chinese carmaker has gone to court over U.S. tariffs and follows similar cases brought by thousands of multinational firms with U.S. operations. These companies are contesting Trump’s reliance on the ‌International Emergency Economic Powers Act (IEEPA) to enforce border taxes.

In the case filed on January 26 at the U.S. Court of International Trade, four BYD subsidiaries operating in the United States argued that the law does not permit such tariffs, noting that “the text of IEEPA does not employ the word “tariff” or any term of equivalent meaning”.

Separately, the U.S. Supreme Court is expected to rule on the legality of the tariffs in another closely watched case. However, Trade Representative Jamieson Greer said last week that the court was proceeding cautiously because of the “enormous” implications involved.

BYD explained in its filing that it brought a standalone lawsuit to preserve its right to claim refunds for tariffs it has already paid.

Although BYD does not sell passenger vehicles in the United States, its American operations include buses and commercial vehicles, batteries, energy storage systems, and solar panels.

According to its website, BYD North America employs about 750 workers at its truck manufacturing facility in Lancaster, California. Trump has repeatedly warned that Chinese vehicles pose a threat to the U.S. auto industry, though he has also said he would welcome a Chinese automaker willing to manufacture cars within the United States.

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