Chinese EV maker BYD files a lawsuit against the US government over tariff orders under the IEEPA, seeking relief for its North American imports. Learn more now.
Chinese electric‑vehicle giant BYD has taken a bold step against the United States government, filing a lawsuit in the United States International Trade Commission (USITC) to block a series of tariff orders imposed under the Emergency Economic Powers Act (IEEPA).
Who’s suing and why?
The complaint is brought by four BYD subsidiaries that operate in North America:
- BYD America LLC – distribution and service.
- BYD Coach & Bus LLC – commercial electric‑bus manufacturing.
- BYD Energy LLC – battery production.
- BYD Motors LLC – import and sales.
These entities allege that the U.S. Department of Homeland Security, U.S. Customs and Border Protection, the Office of the United States Trade Representative, and the Treasury Department exceeded their legal authority when they levied additional duties on BYD‑imported vehicles.
The legal showdown
BYD challenges nine separate IEEPA tariff orders issued since February 2025. The company is asking the USITC to declare the orders “ultra vires” – beyond the agencies’ statutory power – and to void the duties altogether. It also seeks a permanent injunction, reimbursement of all IEEPA tariffs paid, plus interest and reasonable attorneys’ fees.
A wave of trade lawsuits
This case is part of a larger surge in import‑related litigation. Since 2025, thousands of importers have sued the federal government, arguing that IEEPA‑based tariffs violate constitutional limits. A notable precedent came from a small New York wine importer, V.O.S. Selections, whose 2025 victory forced the Supreme Court to hear a presidential‑authority challenge that is expected to be decided in early 2026.
To avoid conflicting rulings and preserve judicial resources, the USITC has placed a nationwide stay on dozens of similar cases, including BYD’s, pending the Supreme Court’s decision in the V.O.S. matter.
BYD’s footprint in the United States
BYD’s U.S. operations focus on commercial electric buses and energy‑storage projects. Since 2013, the company has run a high‑capacity plant in Lancaster, California – one of North America’s largest electric‑bus factories, outputting roughly 1,500 buses annually and employing over 750 local workers. Annual North American revenue from these activities is estimated between $500 million and $1 billion.
What’s at stake?
If BYD prevails, the financial outlook for its U.S. and regional businesses could change dramatically. A favorable ruling would lower tariff rates on vehicles produced at BYD’s Brazilian plant to under 15 % and could revive the stalled Mexico factory project, positioning the company to meet rising demand in the United States, Mexico, and beyond.
In 2025, Mexico already became BYD’s largest overseas market, with exports surpassing 120,000 units. A court victory would likely accelerate that growth and reinforce BYD’s role in the global shift toward electric public‑transport solutions.
Looking ahead
The outcome of BYD’s lawsuit will be closely watched by automotive manufacturers, trade lawyers, and policy makers alike. It could set a precedent for how the U.S. government uses emergency powers to impose trade barriers on foreign‑made electric vehicles and could influence the future of cross‑border EV commerce.
Stay tuned for updates as the case moves through the courts and potentially reshapes the landscape of electric‑vehicle imports in North America.