BYD Fights Trump Tariffs, Suing for Billions in Refunds

3 hours ago

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Why is BYD suing the Trump administration over tariffs?

How much is BYD seeking to recover in this legal dispute?

What impact could this lawsuit have on US-China trade policies?

BYD Fights Trump Tariffs, Suing for Billions in Refunds — Image source: Unblock Media

BYD takes on tariffs imposed under the International Emergency Economic Powers Act.
Lawsuit aims for refunds as industry-wide cases await resolution.

Chinese automaker BYD has filed a significant lawsuit against the U.S. government, challenging billions of dollars in tariffs imposed during the Trump administration under the International Emergency Economic Powers Act (IEEPA). Filed on January 26, 2026, in the U.S. Court of International Trade, the legal action argues that the IEEPA does not legally authorize the implementation of tariffs.

On February 9, 2026, Cryptopolitan reported that four of BYD's U.S. subsidiaries joined the lawsuit, claiming that the IEEPA lacks the necessary language to support tariff enforcement. The case—filed as No. 26-00847—emphasizes that the law does not explicitly mention "tariff" or any similar terms. This marks a precedent-setting challenge for a Chinese automaker, adding BYD to the thousands of businesses contesting Trump-era trade policies in court.

The U.S. Supreme Court is currently reviewing the broader legality of the Trump administration’s tariff strategy, which underpins many of these disputes. A decision is anticipated in the first half of 2026. BYD filed its case independently to safeguard its rights to potential refunds, as the Court of International Trade has stayed thousands of similar cases—including BYD's—pending the Supreme Court's verdict.

While BYD does not sell passenger cars in the U.S., it has built a strong foothold through its electric bus and commercial truck operations, along with the production of batteries, energy storage units, and solar panels. The company’s Lancaster, California, plant employs around 750 workers, highlighting its investment in U.S. operations and its stake in U.S.-China trade dynamics.

This lawsuit reflects BYD’s strategic approach as a global player navigating ongoing tariff disputes. The outcome of this case, along with other similar challenges, will shape the future of trade relations and regulatory frameworks in the years ahead.