BYD Sues Trump Administration for Tariff Refund
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Chinese electric vehicle (EV) giant BYD Co. Ltd. has sued the U.S. government for a refund on the Trump administration’s tariffs, joining a wave of legal challenges from companies including Costco and Toyota.
In a lawsuit filed Jan. 26 with the U.S. Court of International Trade, several of BYD’s American subsidiaries claimed that the U.S. government overstepped its authority to levy the tariffs and demanded a refund, according to a court document.
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- BYD sued the U.S. government for a tariff refund, challenging IEEPA-based tariffs imposed since February 2025; over 100 similar lawsuits were filed recently.
- The Supreme Court is reviewing a related VOS Selections case; a ruling against the tariffs could impact all pending cases and enable widespread refunds.
- BYD’s U.S. focus is on buses and storage, as severe tariffs block EV sales; BYD is also targeting entry into Canada, where tariffs were recently lowered.
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Who’s Who
- BYD Co. Ltd.
- BYD Co. Ltd., a Chinese electric vehicle (EV) giant, is suing the U.S. government for a refund on tariffs imposed by the Trump administration since February 2025. The lawsuit claims the government overstepped its authority. BYD's U.S. business focuses on new-energy buses and energy storage due to high tariffs on its passenger vehicles; however, it is exploring the Canadian market.
- Costco
- Costco is mentioned as one of the companies that have joined a wave of legal challenges against the U.S. government. They, along with companies like BYD and Toyota, are suing for a refund on tariffs imposed by the Trump administration. These lawsuits challenge the legitimacy of the tariffs levied using the International Emergency Economic Powers Act (IEEPA).
- Toyota Motor Corporation
- Toyota Motor Corporation, referred to as 丰田汽车公司, is among the companies that have filed lawsuits against the U.S. government. These lawsuits challenge the tariffs imposed by the Trump administration, specifically under the International Emergency Economic Powers Act (IEEPA). Toyota, along with other businesses like Costco, is seeking a refund on these tariffs.
- VOS Selections
- VOS Selections is a U.S. alcohol importer whose lawsuit against the U.S. government for tariffs levied under the International Emergency Economic Powers Act (IEEPA) is considered a precedent-setting case. Both the U.S. Court of International Trade and the U.S. Court of Appeals for the Federal Circuit ruled the administration's use of IEEPA for tariffs was unauthorized. The U.S. Supreme Court held a hearing on the case in November 2025, and its final ruling is pending.
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What Happened When
- 2018：
- The U.S. imposed Section 301 tariffs on Chinese goods after a trade investigation.
- 2024：
- U.S. tariffs on Chinese EVs were raised to 102.5%.
- February 2025：
- The Trump administration began using the International Emergency Economic Powers Act (IEEPA) to impose tariffs on a wide range of foreign goods.
- April 2025：
- U.S. alcohol importer VOS Selections filed a precedent-setting case over the IEEPA tariffs.
- Late 2025：
- The 'liquidation' (finalization) process for duties paid under the tariffs began.
- November 2025：
- U.S. Supreme Court held a hearing on the VOS Selections IEEPA tariffs case.
- Late December 2025：
- U.S. Court of International Trade issued an order to freeze all unassigned and new IEEPA-related cases until the VOS Selections Supreme Court verdict.
- January 2026：
- The Canadian government announced a quota system allowing import of up to 49,000 Chinese EVs annually at a 6.1% tariff rate.
- January 26, 2026：
- BYD filed a lawsuit with the U.S. Court of International Trade challenging the Trump administration's tariffs.
- January 26, 2026 to February 4, 2026：
- 104 companies filed similar lawsuits against the IEEPA tariffs.
- As of February 9, 2026：
- The U.S. Supreme Court's final ruling on the VOS Selections IEEPA tariffs case remains pending.
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