Chinese automaker BYD, the global leader in electric vehicle sales, has taken an unprecedented step in the trade dispute with the United States by filing a lawsuit against the United States government over tariffs imposed on its products.
Four BYD subsidiaries operating in the United States argue before the U.S. Court of International Trade that Washington lacks the legal authority to apply these duties under the International Emergency Economic Powers Act (IEEPA), the statute cited to justify the tariffs. The company is asking the court to declare the orders invalid and to refund all tariffs paid, plus interest.
Although BYD does not currently sell passenger cars in the U.S. market, it does offer electric buses, trucks, batteries, and energy systems. The lawsuit also targets several senior government officials and could set a significant precedent for other Chinese companies seeking to challenge similar measures through legal channels.
Experts warn that tariffs have placed added pressure on global supply chains and distorted international competition.
What would happen if BYD wins the case?
The company could recover previously paid tariffs, potentially enter the U.S. market under lower duties, and revive production plans in regions such as Brazil or Mexico, intensifying global competition in the EV sector.
