Business

BYD Sues US for Tariff Refund
By Reuters | 09 Feb, 2026

The first such suit by a Chinese carmaker challenges Trump's invocation of sweeping tariff powers without congressional approval.

Chinese automaker BYD has filed a lawsuit against the U.S. government challenging President Donald Trump's bid to use sweeping authority to impose tariffs, and requesting a refund for all levies it paid since last April, court documents show.

The lawsuit, the first by a Chinese carmaker over U.S. tariffs, follows similar complaints by thousands of global companies with U.S. operations challenging Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose border taxes.

In the lawsuit filed at the U.S. Court of International Trade on January 26, four of BYD's U.S. subsidiaries argue that the law does not authorize border taxes as "the text of IEEPA does not employ the word "tariff" or any term of equivalent meaning". 

In a separate, high-stakes case, the U.S. Supreme Court is expected to rule on the legality of the tariffs, but Trade Representative Jamieson Greer said last week the court was taking its time given the "enormous" stakes involved.

BYD said in the lawsuit that it had to file an independent complaint to protect its ability to be refunded for the tariffs it has already paid.

While the Chinese carmaker does not sell passenger cars in the U.S., its business in the country includes buses and commercial vehicles, batteries, energy storage systems and solar panels.

Its unit BYD North America employs 750 workers in its truck plant in Lancaster, California, according to its website. 

Trump repeatedly said Chinese cars threaten the future of the U.S. auto industry, but has said a few times that he would welcome a Chinese automaker that wants to build cars on U.S. soil.

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

(Reporting by Alessandro Parodi in Gdansk, editing by Chizu Nomiyama )