BYD sues US government to seek refunds on Trump-era tariffs

BYD, China’s largest EV maker, has filed a lawsuit in the US Court of International Trade seeking refunds for tariffs paid under former President Donald Trump’s import duties, according to Bloomberg.

The company’s US units argue that executive orders supporting the tariffs are invalid, making the duties unlawful.

BYD, which produces electric buses and trucks in the US, stated it has paid significant duties on imported materials but does not sell passenger vehicles in the US due to high tariffs and regulatory hurdles.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

BYD filed the suit to meet legal deadlines

The suit argues the President overstepped by using the International Emergency Economic Powers Act (IEEPA) to impose duties, since the statute never uses the word “tariff” 1.
The theory has appeared before; lower courts already found similar Trump-era import duties unlawful in V.O.S. Selections v. Trump, now pending at the Supreme Court 1.
With a decision expected in early 2026, more than 1,000 corporate entities filed related cases as an “insurance policy” 2.
Companies that paid the duties may not get refunds unless they file their own claims before deadlines run out 3.

This lawsuit could also position BYD for a future US passenger EV entry

The case targets duties tied to BYD’s US business, including electric buses and trucks, while keeping open a later move into the US passenger car market 2 4.
BYD’s US subsidiaries, which back work like electric bus manufacturing in California, give the standing needed to bring the challenge in a US court 4.
If BYD wins, the ruling may cut duty barriers for other importers too, though the broader impact remains uncertain 4.
Even if these tariffs fall, the US government may switch to Section 301 tariffs (trade enforcement tied to unfair foreign practices) or Section 232 tariffs (national-security-based) to build new barriers 5.