Chinese electric vehicle and clean-energy major BYD has taken a significant legal step in the United States, filing a lawsuit against the federal government to challenge tariffs imposed by President Donald Trump.
The case, filed in the US Court of International Trade in New York, seeks refunds for import duties paid since April and questions the legal basis used to impose the levies. BYD’s US subsidiaries argue that the tariffs were introduced under the International Emergency Economic Powers Act (IEEPA), a law meant for national security emergencies, not for imposing broad trade barriers.
The emergency law does not explicitly allow the government to levy import tariffs. BYD is asking the court to order the repayment of duties already paid and to safeguard its right to future refunds if the tariffs are ruled invalid.
While BYD does not sell passenger cars in the US, it has a growing footprint in the country through its electric buses, trucks, batteries, energy storage systems and solar products. Its manufacturing facility in Lancaster, California, employs around 750 workers, making the company an active contributor to local jobs and clean-energy infrastructure.
The legal move places BYD among a rising number of global companies challenging Trump’s trade policies. The dispute also comes as the US Supreme Court considers a separate case that could ultimately decide whether emergency powers can be used to justify such tariffs.
For Washington, the case revives a sensitive debate around trade protectionism and executive authority. For BYD, it is both a financial and strategic decision, aimed at recovering costs while seeking clarity on the rules governing global trade.
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