Editor’s Note
This article reports on a legal challenge by BYD against U.S. tariff measures. The case, filed in the U.S. Court of International Trade, questions the legal basis of the executive orders under which the tariffs were imposed.
Chinese vehicle manufacturer BYD has filed a lawsuit against the U.S. government through four subsidiary companies in the United States Court of International Trade. The company is challenging executive orders imposing tariffs based on the International Emergency Economic Powers Act (IEEPA). The case was registered on January 26, 2026, and issued by the court on February 2. The action questions the legal authority to implement these tariffs and requests a declaration of the measures’ invalidity. Additionally, BYD is demanding a full refund of the amounts paid, plus interest and procedural costs. This initiative represents the first direct legal action by a Chinese vehicle manufacturer against U.S. tariff policies. The disputed tariffs include orders issued since 2025, covering products imported from several countries. They directly affect BYD’s operations in the electric vehicle, bus, and battery sectors.
Main plaintiff subsidiaries: BYD America LLC, BYD Coach and Bus LLC, BYD Energy LLC, and BYD Motors LLC.
Defendants include the U.S. Department of Homeland Security, Customs and Border Protection, and the U.S. Trade Representative.
Case Number: 26-00847.
The company seeks permanent measures to prevent the application of these tariffs in the future. The petition also includes the return of all amounts collected under the disputed orders. The action involves nine executive orders and their amendments.
Tariff measures were implemented to protect U.S. industry and address trade practices deemed unfair. They affect imports of electric vehicles and components from China. The government justifies the use of IEEPA as a tool for national economic emergencies.
These tariffs increase costs for importers and impact global supply chains. Foreign companies operating in the U.S. are directly affected in their margins. BYD maintains production and distribution units in the American market despite the restrictions.
Experts in the Chinese automotive sector view this action as a legitimate defense strategy. Companies are increasingly turning to the U.S. judicial system to protect their commercial interests. This initiative may encourage other vehicle manufacturers to adopt a similar path.
This process directly serves BYD’s interests and signals an active stance against protectionist barriers. A favorable ruling would set a significant precedent for the sector. Thousands of companies have already filed similar challenges against identical orders.
High tariffs compromise the stability of global automotive production chains. They affect not only Chinese vehicle manufacturers but also suppliers from various countries. BYD operates manufacturing facilities in several regions, including North America.
This dispute highlights the ongoing trade tensions between the United States and China. Protectionist measures limit access to advanced technologies in electric vehicles. American consumers face narrower choices and potentially higher prices.
The action emphasizes that the power to regulate tariffs lies with the U.S. Congress. IEEPA does not authorize the unilateral imposition of broad trade barriers. Court documents point to excessive authority in the executive orders.
BYD filed an independent complaint to secure the right to a refund. Other companies have also obtained favorable preliminary rulings in similar cases. The outcome of the process remains uncertain but holds guiding significance.
Sector representatives highlight the trend of judicialization in commercial disputes. Chinese companies seek legal channels to protect their operations in the United States. BYD demonstrates a willingness to directly confront tariff policies.
This approach differs from previously adopted passive responses. This case confirms the use of international legal instruments by companies in the country. Investment in regulated markets gains a new layer of legal protection.
The electric vehicle sector in the United States faces specific barriers. Tariffs aim to protect local manufacturers and encourage domestic production. BYD is a world leader in sales of electrified models.
The case is ongoing in the United States Court of International Trade, which specializes in commercial disputes. This court’s decisions can influence broader tariff policies. Companies are following the case as a reference for future actions.
Despite U.S. restrictions, BYD has maintained global expansion. The company invests in factories in Mexico, Brazil, and Europe. The American market remains challenging for Chinese passenger car manufacturers.