TLDR
- BYD has filed a lawsuit against the U.S. government, challenging tariffs imposed by President Trump using IEEPA.
- The company seeks a refund for tariffs paid since April 2018, claiming they harm its U.S. operations.
- BYD’s lawsuit is the first by a Chinese automaker to challenge U.S. tariffs on imports.
- Despite tariffs, BYD overtook Tesla in 2025 global EV sales, delivering 2.26 million vehicles.
- BYD plans expansion with 13 models, including the U9 Xtreme hypercar, and 3,000 fast-charging stations.
Chinese automaker BYD has filed a lawsuit against the U.S. government over tariffs imposed by President Donald Trump. The lawsuit challenges Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs. BYD also seeks a refund for all levies paid since April 2018 as part of its ongoing dispute.
BYD’s Legal Challenge Against U.S. Tariffs
BYD’s lawsuit is the first by a Chinese carmaker challenging U.S. tariffs on imported goods. The company filed the complaint on January 26 at the U.S. Court of International Trade. In its suit, BYD’s U.S. subsidiaries argue that the IEEPA does not authorize the imposition of tariffs.
The complaint asserts that the word “tariff” is not used within the text of the law, invalidating the basis for the levies. BYD’s suit seeks a refund for the tariffs it has already paid since April 2018.
The company claims the tariffs unfairly impacted its operations in the U.S., which includes sales of buses, commercial vehicles, batteries, and solar panels. The lawsuit also argues that the levies violate international trade principles by imposing excessive costs on foreign businesses operating in the U.S.
Legal Implications and Ongoing Supreme Court Case
In addition to BYD’s lawsuit, the U.S. Supreme Court is reviewing a separate case on the legality of the tariffs. Trade Representative Jamieson Greer confirmed that the Supreme Court is carefully considering the case, given its broad implications.
The decision could affect future tariffs and trade policies, especially regarding their impact on foreign companies and their rights to challenge such measures. Despite the legal actions, the tariffs remain in place for the time being, with BYD pushing forward to protect its interests.
The company’s lawsuit represents a broader push by global businesses to challenge the U.S. government’s use of tariffs under the IEEPA. These legal proceedings are likely to shape future trade policies and enforcement.
BYD Overtakes Tesla in Global EV Sales
Despite pressure from tariffs, BYD surpassed U.S.-owned Tesla in global EV sales, delivering 2.26 million battery-electric vehicles in 2025. The company, originally a battery manufacturer, has expanded into a major EV maker, employing over 120,000 R&D engineers.
BYD’s manufacturing expertise plays a key role in its success, producing components for about a third of the world’s smartphones. The company now offers 13 car models across Europe and the Gulf region, including the high-speed U9 Xtreme hypercar and the Euro NCAP five-star-rated Dolphin. BYD is addressing charging infrastructure with innovative 1-megawatt charging technology and plans for 3,000 fast-charging stations.
