BYD Sues Trump Administration Challenging Legality of Imposed Tariffs

According to the Economic Desk of Webangah News Agency, court documents reveal that BYD has initiated legal action against the US government, challenging the expansive authority utilized by President Donald Trump to impose tariffs, and demanding the full repayment of all duties it has paid since April of the preceding year.

This filing marks the first lawsuit launched by a Chinese automaker against American tariffs, joining thousands of global companies operating within the US that are currently challenging the President’s use of the International Emergency Economic Powers Act (IEEPA) to enforce border taxes.

In the complaint, registered on January 26th with the US International Trade Commission, four US subsidiaries of BYD argued that IEEPA does not authorize the imposition of border tariffs, asserting that the text of the International Emergency Economic Powers Act omits the word ‘tariff’ or any equivalent term.

BYD stated in the petition that filing an independent lawsuit was necessary to protect its capacity to recover previously paid tariffs.

Although BYD does not currently sell passenger vehicles in the US market, the Chinese automaker maintains significant business operations in the country, encompassing commercial vehicles, buses, energy storage systems, batteries, and solar panels.

President Trump has repeatedly expressed the view that Chinese vehicles pose a threat to the future of the American automotive industry, yet he has also stated on several occasions that he would welcome a Chinese automaker willing to establish manufacturing operations within the United States.

Reuters reports that this case is currently under review at the US International Trade Commission in New York, docketed as case number 00847-26.