Chinese EV giant joins hundreds of companies seeking tariff refunds
BYD lawsuit against Trump tariffs has become the latest development in a growing legal wave challenging import duties imposed during Donald Trump’s presidency. The world’s largest electric vehicle manufacturer, China-based BYD, has officially joined hundreds of companies suing the US government to recover customs duties paid under disputed tariff orders.
According to court filings, BYD’s American subsidiaries filed a lawsuit on January 26 at the US Court of International Trade, arguing that the executive orders used to justify the tariffs are legally invalid. As a result, the company claims the collection of these customs duties is unlawful and should be refunded.
BYD seeks legal protection amid uncertainty
In its filing, BYD stated that it chose to pursue legal action because it could not be confident that tariff payments would be reimbursed without a judicial ruling. The company emphasized that ongoing uncertainty surrounding the legality of the tariffs left it with no alternative but to seek a court decision.
At the same time, the US Supreme Court is still expected to rule on whether former President Trump had the legal authority to impose certain tariffs through executive orders. That ruling could have far-reaching consequences for thousands of companies operating in the United States.
Thousands of firms demand tariff refunds
BYD is far from alone. More than 1,000 major companies, including well-known names such as Costco Wholesale and Goodyear, have filed similar lawsuits in an effort to reclaim their share of billions of dollars collected by the US government through import tariffs.
Former President Trump previously addressed the issue on social media, warning that being forced to refund these tariffs would amount to a “national security disaster.” His comments added political weight to what has already become one of the most significant trade-related legal battles in recent US history.
Impact on BYD’s US operations
Although BYD is the global leader in electric vehicle production, the company does not sell passenger cars in the United States. High import tariffs and a complex regulatory environment have kept the firm out of the US consumer car market.
However, BYD does maintain a strong presence in the country through its electric bus and truck operations. In the lawsuit, the company explained that it imports essential components and materials to support its US manufacturing activities and has paid substantial tariffs as a result.
BYD argues that these costs place an unfair burden on its American operations and undermine its ability to compete effectively in the market.
No official response from China-based BYD
While the issue has drawn international attention, BYD’s spokesperson in China did not respond to requests for comment from Bloomberg News. The matter was previously reported by Caixin Global, highlighting its importance within global trade and manufacturing circles.
As legal proceedings continue, the outcome of BYD’s case—and others like it—could reshape how future US administrations impose trade measures and how companies respond to them.
A case with global implications
The BYD lawsuit against Trump tariffs is being closely watched by legal experts, investors, and policymakers worldwide. A ruling in favor of the companies could trigger massive refunds and limit executive power over trade policy. On the other hand, a decision upholding the tariffs would reinforce the authority of US presidents to act swiftly on trade in the name of national security.
Either way, the case marks a critical moment in the ongoing debate over globalization, protectionism, and the future of international trade.
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