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BYD Sues U.S. Over Trump’s IEEPA Tariffs, Seeking to Void Orders and Recover Duties

The case tests whether emergency powers under IEEPA allow border tariffs, a question that could redefine presidential trade authority.

Overview

  • Four BYD subsidiaries filed the case on Jan. 26 at the U.S. Court of International Trade, docketed as No. 26-00847.
  • The complaint argues IEEPA does not authorize tariffs, seeking declaratory relief, injunctions against enforcement, and refunds of duties paid since April 2025 with interest.
  • The suit challenges nine executive orders issued since February 2025, including tariffs at the borders with Mexico and Canada and measures tied to China and fentanyl.
  • BYD’s filing is the first tariff lawsuit by a Chinese automaker, and the company says it acted to preserve refund rights while tariffs remain in place.
  • BYD operates U.S. businesses in buses, batteries, energy storage and solar, employing about 750 workers in Lancaster, California, as a separate Supreme Court review of the tariffs proceeds with officials noting the stakes are enormous.