Chinese electric vehicle giant BYD has filed a lawsuit against the Trump administration, challenging the U.S. government's authority to enact sweeping tariffs, and demanding a refund for all levies paid since April of last year.
According to CNBC, BYD's lawsuit echoes other recent court challenges that have questioned the legality of President Donald Trump's tariffs, over claims that Trump overstepped the authority granted to him by the International Emergency Economic Powers Act (IEEPA). In court documents filed in New York's U.S. Court of International Trade on January 26, four U.S. subsidiaries of BYD noted that IEEPA — which gives the executive the power to regulate trade in response to national emergencies — does not explicitly authorize the President to enact tariffs, nor does the law even mention the word "tariff" at all.
BYD overtook Tesla to become the world's top seller of EVs in 2025, and although it does not sell passenger vehicles in the U.S., it does still sell buses, commercial vehicles, batteries and solar panels to American clients. BYD North America also employs roughly 750 workers at its truck plant in Lancaster, California.
A separate lawsuit currently under consideration by the U.S. Supreme Court makes a similar case to strike down Trump's levies. Roughly 71% of tariffs issued by the White House in 2025 were enacted under the auspices of IEEPA, and if they were to be struck down, the U.S. Treasury would be forced to return tens of billions of dollars in collected revenue. However, the Supreme Court has been slow to rule on the IEEPA case in the three-plus months since oral arguments took place, with no indication as to when a final decision may arrive.
