BYD subsidiaries have sued the Trump administration in the US, challenging its authority to impose tariffs under IEEPA.
The lawsuit comes as the US government awaits a Supreme Court ruling in a separate but similar tariff case.
The case is filed by BYD America, BYD Coach & Bus, BYD Energy and BYD Motors.
A group of subsidiaries of Chinese automaker BYD has filed a lawsuit in the US against the Trump administration over its authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). The lawsuit comes as the US government awaits a Supreme Court ruling in a similar case.
The case has been filed by BYD America LLC, BYD Coach & Bus LLC, BYD Energy LLC and BYD Motors LLC, and targets agencies including the Department of Homeland Security, US Customs and Border Protection, the Office of the US Trade Representative and the Treasury Department, according to a report by Chinese media outlet Global Times.
3 February 2026
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Filed before the US Court of International Trade, the lawsuit challenges multiple executive orders that led to tariffs affecting BYD’s business, including passenger vehicle sales, commercial vehicle production and battery supply.
BYD argues that the US government does not have the legal authority to levy tariffs under the IEEPA. It is seeking to have the contested tariff measures struck down, their enforcement permanently halted, and monetary relief, including refunds of tariffs paid under the IEEPA, along with interest and reasonable legal expenses.
According to a CNBC report citing the lawsuit documents, the companies said the law does not authorise border taxes, noting that “the text of IEEPA does not employ the word ‘tariff’ or any term of equivalent meaning.”
The lawsuit comes amid an ongoing case in the US Supreme Court that is widely expected to go against the Trump administration. The case, filed by US educational toy company Learning Resources, Inc. and later joined by a group of other private companies, argues that tariffs imposed under the IEEPA exceed the president’s authority and violate the Constitution.
Lower courts have already ruled that President Trump overstepped his authority by using the IEEPA to impose reciprocal tariffs on multiple trading partners, as well as fentanyl-related tariffs on Canada, China and Mexico.
During a hearing in November, Supreme Court justices from both conservative and liberal wings questioned the legality of the sweeping tariffs imposed by President Donald Trump, expressing doubt that the IEEPA gives the president authority to impose broad, reciprocal tariffs without Congress.
The Trump administration defended the tariffs as regulatory tools linked to foreign commerce rather than taxes, an argument several justices rejected, noting that tariffs raise revenue and that no previous president had used the IEEPA in this way since 1977.
At the time, observers and legal analysts expected the Court to issue a decision by the end of 2025 or in early 2026, given the expedited briefing schedule agreed by both sides.
Later, President Trump said in a post on Truth Social that “it would take many years to figure out what number we are talking about and even, who, when, and where, to pay.” He added: “It would be a complete mess, and almost impossible for our country to pay.”
