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BYD Files Lawsuit Against US Tariffs, Seeks Refund

Investing.com •
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BYD has filed a lawsuit against the U.S. government challenging President Trump's tariffs and seeking refunds for levies paid since last April. The Chinese automaker's four U.S. subsidiaries argue that the International Emergency Economic Powers Act (IEEPA) does not authorize border taxes, as the law does not explicitly mention the word 'tariff' or equivalent terms.

This marks the first legal action by a Chinese carmaker over U.S. tariffs, filed at the U.S. Court of International Trade on January 26. While BYD does not sell passenger cars in the United States, its American business includes buses, commercial vehicles, batteries, energy storage systems, and solar panels. The company employs 750 workers at its truck plant in Lancaster, California.

The lawsuit follows similar complaints from thousands of global companies with U.S. operations that have challenged Trump's use of IEEPA to impose border taxes. The case comes as the U.S. Supreme Court is expected to rule on the legality of these tariffs, with U.S. Trade Representative Jamieson Greer noting the court is taking its time given the 'enormous' stakes involved. BYD's legal challenge represents a significant escalation in the ongoing trade dispute between the United States and China.