WASHINGTON — Four US-based subsidiaries of Chinese automaker BYD have filed a lawsuit against the US federal government, challenging a series of tariff-related executive orders imposed under the International Emergency Economic Powers Act (IEEPA), according to court records and reports by Chinese financial media.
The case, filed on January 26, 2026, in the US Court of International Trade, questions whether the executive branch has the statutory authority to impose broad import tariffs under the IEEPA framework. The dispute matters for global automakers and importers as it could affect how tariffs are applied and contested under US trade law.
Scope of the lawsuit
Court documents show that the plaintiffs include BYD’s four core North American operating entities: BYD America LLC, BYD Coach & Bus LLC, BYD Energy LLC, and BYD Motors LLC. The defendants include the US government and senior officials from agencies responsible for trade enforcement and tariff collection, including Customs and Border Protection, the Department of Homeland Security, the Office of the US Trade Representative, and the Treasury Department.
The lawsuit challenges nine executive orders and related amendments issued since February 2025. These include tariff measures targeting imports from Mexico, Canada, China, Brazil, and India, covering categories ranging from border-related duties to country-specific trade actions.
Relief sought by BYD
BYD is asking the court to rule that the challenged tariff orders exceed the legal authority granted under IEEPA and to declare them invalid. The company is also seeking permanent injunctions against their enforcement, as well as refunds of tariffs already paid under the disputed measures, plus interest and litigation costs.
According to reports by Caijing and other Chinese financial outlets, the case is being pursued to preserve BYD’s right to seek remedies for imports already cleared or currently in the pipeline, even as broader legal questions around tariff authority remain unresolved.
Part of wider US trade litigation
The lawsuit comes amid a broader wave of trade-related litigation in the United States. Since 2025, thousands of importers have filed similar challenges questioning the use of IEEPA as a legal basis for imposing tariffs. One such case, brought by New York-based wine importer V.O.S. Selections, has already produced rulings at lower courts finding that IEEPA does not grant the president authority to impose tariffs.
That case is currently under review by the US Supreme Court, which heard oral arguments in November 2025. A final ruling is expected in the first half of 2026. Pending that decision, the Court of International Trade has issued stay orders freezing proceedings in related cases, including BYD’s, to avoid inconsistent judgments.
Implications for BYD’s US operations
BYD’s existing US business focuses primarily on commercial electric vehicles and energy infrastructure projects. The company has operated an electric bus manufacturing facility in Lancaster, California, since 2013, supplying vehicles to municipal transit agencies and utility operators across North America.
Industry analysts cited by Chinese media say a favorable Supreme Court ruling could have broader implications for automakers seeking lower-tariff access to the US market, though BYD’s current lawsuit remains procedurally paused until the court provides clarity on tariff authority under federal law.
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