Investing.com — Chinese automaker BYD has filed a lawsuit against the U.S. government challenging President Donald Trump's tariffs and requesting a refund for all levies paid since last April.
In the legal filing, four of BYD's U.S. subsidiaries argue that the law does not authorize border taxes, stating that “the text of IEEPA does not employ the word 'tariff' or any term of equivalent meaning.”
BYD stated in the lawsuit that it filed an independent complaint to protect its ability to receive refunds for tariffs already paid.
The lawsuit, filed at the U.S. Court of International Trade on January 26, marks the first legal action by a Chinese carmaker over U.S. tariffs. It follows similar complaints from thousands of global companies with U.S. operations that have challenged Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose border taxes.
While BYD does not sell passenger cars in the United States, its American business includes buses and commercial vehicles, batteries, energy storage systems, and solar panels. According to its website, BYD North America employs 750 workers at its truck plant in Lancaster, California.
President Trump has repeatedly claimed that Chinese cars threaten the future of the U.S. auto industry, though he has occasionally stated he would welcome Chinese automakers that build cars on U.S. soil.
In a separate but related case, the U.S. Supreme Court is expected to rule on the legality of the tariffs. U.S. Trade Representative Jamieson Greer said last week that the court was taking its time given the “enormous” stakes involved.
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