China’s Top EV Maker BYD Sues U.S. Government: Challenges Trump-Era Tariffs

10 February 2026 at 14:29

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BYD has filed a lawsuit challenging U.S. tariffs imposed during Donald Trump’s earlier presidency
The company is seeking refunds for tariffs paid since April 2025
The case could have wider implications for U.S.–China trade and tech tensions

Chinese electric vehicle giant BYD has filed a lawsuit against the U.S. government, challenging tariffs that were imposed during Donald Trump’s earlier presidency.

The case was filed on January 26, 2026, in the U.S. Court of International Trade under case number 26-00847, and was publicly disclosed in early February. Four U.S.-based BYD entities: BYD America, BYD Coach & Bus, BYD Energy, and BYD Motors, are listed as plaintiffs. The defendants include several federal agencies, such as U.S. Customs and Border Protection, the Treasury Department, and the Office of the U.S. Trade Representative.

BYD argues that the tariffs were imposed under the International Emergency Economic Powers Act (IEEPA), a law that does not explicitly authorize the use of tariffs or border taxes. The company claims this represents an overreach of executive power and is asking the court to declare the measures invalid, block their enforcement, and order refunds of all tariffs paid, along with interest and legal costs.

Beyond BYD, the lawsuit could have broader implications for U.S.–China trade and the ongoing tech rivalry. If the court limits the use of IEEPA for tariffs, it may weaken a key U.S. trade tool and encourage other Chinese firms, especially in batteries, solar, and EV supply chains, to pursue similar legal challenges. Analysts say the case also reflects a shift toward Chinese companies using U.S. courts, rather than diplomacy alone, to challenge trade restrictions.

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