The lawsuit, submitted in late January to the U.S. Court of International Trade, claims that Washington lacks the authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA) and seeks the annulment of the executive orders that established these tariffs, along with the reimbursement of the amounts charged, plus interest.
The complaint targets not only the U.S. government but also senior officials from the Department of Homeland Security, the Department of the Treasury, the Office of the U.S. Trade Representative, and the Customs and Border Protection Agency.
According to the Chinese newspaper Global Times, this marks the first time a Chinese automotive company has directly challenged the tariffs imposed by Washington through the courts, setting a “precedent” for other companies in China to “legally defend their rights and legitimate interests.”
Sun Xiaohong, director of the automotive department at the China Chamber of Commerce for Import and Export of Machinery and Electronics Products, noted that these tariffs not only affect manufacturers but also pose a “serious challenge” to the stability of global supply chains.
While acknowledging that the lawsuit will face “challenges” and its outcome is “uncertain,” Sun believes BYD’s initiative could serve as a “significant guide” for other Chinese companies seeking to pursue legal action.
Although trade tensions escalated with Donald Trump’s return to the White House, it was during Joe Biden’s administration (2021–2025) that 100% tariffs were imposed on electric vehicle imports from China, a rate that increased to 135% following further hikes and negotiations led by the current president.
According to the specialized portal CarNewsChina, if BYD, the world’s largest seller of electric vehicles, wins the lawsuit, it could access the U.S. market with vehicles produced in its Brazilian facilities, subject to tariffs of less than 15%, and could revive plans to establish a large factory in Mexico, which are currently on hold.
