Chinese EV giant BYD sues US govt over Trump's tariff orders, questions legal authority

The lawsuit was filed on January 26, 2026, and publicly disclosed by the court on February 2 under case number 26-00847, the Global Times said.

• BYD's US subsidiaries sued the US government over tariffs imposed under IEEPA
• BYD seeks invalidation of tariff orders, refunds, and legal costs in court
• This marks the first direct legal challenge by a Chinese automaker to US tariffs

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Four US-based subsidiaries of Chinese electric vehicle maker BYD Co have sued the US government over tariff measures imposed under the International Emergency Economic Powers Act (IEEPA), a Global Times report says.

The lawsuit, filed in the US Court of International Trade, targets a series of executive orders that have resulted in tariffs affecting BYD's operations in areas including passenger vehicle sales, commercial vehicle manufacturing and battery supply, the Global Times said. A source familiar with the matter confirmed on Sunday that the lawsuit submitted by the BYD entities is genuine.

Industry observers told the Global Times that while the outcome of the case remains uncertain, the legal action is significant as it marks the first time a Chinese automaker has directly and proactively challenged US tariffs through the courts. Analysts said the move could serve as an important reference point for Chinese companies seeking to protect their lawful rights and interests through legal channels.

Court documents cited by Chinese financial media outlets indicate that BYD has asked the court to rule that the US government lacks the statutory authority to impose tariffs under the IEEPA framework. The company is also seeking to have the challenged tariff orders declared invalid, permanent injunctions to stop their enforcement, and financial relief, including refunds of all tariffs collected under the IEEPA, along with interest and reasonable legal costs, the Global Times reported.

The plaintiffs in the case are BYD America LLC, BYD Coach & Bus LLC, BYD Energy LLC and BYD Motors LLC, which together represent BYD's core North American operations. The defendants include the US federal government as well as senior officials from agencies such as the Department of Homeland Security, US Customs and Border Protection, the Office of the US Trade Representative and the Treasury Department, according to the Global Times.

The lawsuit was filed on January 26, 2026, and publicly disclosed by the court on February 2 under case number 26-00847, the Global Times said.

"BYD's move reflects a growing tendency among companies to defend their legitimate rights and interests through legal means," Sun Xiaohong, secretary-general of the automotive branch of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, told the Global Times.

Sun said the high tariffs imposed by the US affect both domestic and foreign automakers and pose risks to the stability of global supply chains, making it increasingly necessary for companies to seek legal remedies. While acknowledging the challenges and uncertainties surrounding the case, she said the lawsuit carries important implications and could encourage more Chinese firms to pursue legal action rather than remain passive.

She added that the tariffs are protectionist in nature and that Chinese automakers' participation in the US market benefits American consumers by offering more affordable electric vehicles, the Global Times reported.

The Global Times noted that BYD's lawsuit comes amid a broader wave of legal challenges against US tariff policies. Thousands of companies worldwide have filed cases contesting sweeping US tariffs and seeking refunds of duties paid, as reported by Reuters on January 9.