BYD Challenges U.S. Tariffs Under International Emergency Economic Powers Act
Four U.S. Subsidiaries of Chinese automaker BYD, the world’s leading seller of electric vehicles, have filed a lawsuit against the U.S. Government challenging a series of executive orders related to tariffs, according to local press reports.
The lawsuit alleges that Washington lacks the authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA), and seeks a declaration that the orders resulting in the application of the tariffs are invalid, as well as a refund of the duties paid with interest.
BYD’s subsidiaries filed the complaint in late January with the U.S. Court of International Trade against the U.S. Government, as well as senior officials from the Department of Homeland Security, the Customs and Border Protection Office, the Office of the United States Trade Representative, and the Department of the Treasury.
An analyst cited by the official Global Times noted that this marks the first instance of a Chinese automaker directly and actively challenging U.S. Tariffs, “setting a precedent” for other firms from the Asian nation “to defend their legitimate rights and interests through legal channels.”
Sun Xiaohong, head of the automobile department of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, stated that the tariffs not only affect manufacturers but also pose a “serious challenge” to the stability of global supply chains.
According to Sun, the lawsuit will face “difficulties” and its outcome is “uncertain,” but also believes it will provide “considerable” guidance for other Chinese companies seeking to initiate similar legal proceedings.
While the tariff conflict has intensified since President Donald Trump’s return to the White House, it was the Biden Administration (2021-2025) that applied 100% tariffs on the import of electric vehicles from China, which increased to 135% following increases and negotiations already led by the current U.S. President. The escalating tariffs reflect a broader trend of protectionist measures impacting the automotive industry.
According to the specialized portal CarNewsChina, if BYD is successful, it could access the U.S. With products manufactured at its facilities in Brazil with tariff rates below 15%, and could revive its suspended plan to open a major factory in Mexico.
