BYD sues the U.S. government, demanding a full refund of all tariffs.

(Washington / Shenzhen, Feb 10) — U.S. court filings show that Chinese electric vehicle giant BYD has filed a lawsuit against the U.S. government, challenging President Donald Trump’s use of broad executive powers to impose additional tariffs and seeking refunds for all duties paid since April last year.

This marks the first known legal challenge by a Chinese automaker against U.S. tariffs. Previously, thousands of global companies operating in the United States had lodged similar complaints, questioning the legality of using the International Emergency Economic Powers Act (IEEPA) as a basis for imposing tariffs.

According to the lawsuit, four BYD subsidiaries in the U.S. filed the case on Jan 26 in the U.S. Court of International Trade. BYD argues that IEEEPA does not authorize tariffs, as the statute does not explicitly mention “tariffs” or any equivalent term. The company said it filed a separate action to preserve its right to seek refunds for duties already paid.

While BYD does not currently sell passenger cars in the U.S., its American operations include buses, commercial vehicles, batteries, energy storage systems, and solar panels.

Analysts note that if BYD prevails, products manufactured at its facilities in Mexico and Brazil could enter the U.S. market with lower tariff barriers, potentially opening the door for future expansion of its passenger car business in North America.