The lawsuit challenges a series of tariff orders implemented under the International Emergency Economic Powers Act (IEEPA) to impose duties. The CIT announced information about the case on 2/2.

According to court documents obtained by China's Caijing magazine, the plaintiffs are BYD's four North American operating entities: BYD America LLC, BYD Coach & Bus LLC, BYD Energy LLC, and BYD Motors LLC. BYD America LLC is responsible for North American distribution and services; BYD Coach & Bus LLC handles commercial electric vehicle manufacturing; BYD Energy LLC manages battery manufacturing operations; and BYD Motors LLC oversees imports and sales. Defendants include the US federal government and officials from the US Department of Homeland Security (DHS), US Customs and Border Protection (CBP), the Office of the US Trade Representative (USTR), and the US Department of the Treasury.

The lawsuit challenges 9 orders and amendments issued since 2/2025.

Headquarters of one of BYD's four subsidiaries in California, US. Photo: BYD

BYD asks the court to rule that the defendants lack statutory authority to impose tariffs under the IEEPA framework and declare all tariff orders void as exceeding their authority. The company seeks a permanent injunction against the implementation of these measures and economic relief. This relief includes reimbursement of all IEEPA duties collected from the plaintiffs, plus interest and reasonable litigation costs.

This lawsuit is part of a wave of litigation in US trade law. Thousands of importers have filed similar suits since 2025 to challenge the administration's legal authority to impose tariffs using IEEPA.

A lawsuit filed by V.O.S. Selections, a New York wine importer, in 4/2025, secured favorable rulings at both the CIT and a federal appeals court. These rulings determined that the President lacked authority to impose tariffs under IEEPA. The government appealed to the Supreme Court, which heard arguments on 5/11/2025. A final ruling is expected in the first half of 2026.

To avoid inconsistent rulings and conserve judicial resources, the CIT issued a stay on thousands of similar cases nationwide, including BYD's. All cases are currently paused pending the Supreme Court's final decision in the V.O.S. case.

Despite this procedural pause, BYD's lawsuit serves strategic purposes, according to Caijing. It protects the company's right to seek remedies for imports already cleared or soon to be cleared. It also expands the scope beyond the executive orders addressed in the V.O.S. case.

BYD's operations in the US primarily focus on commercial vehicles and energy infrastructure. Since 2013, the company has operated a manufacturing plant in Lancaster, California. This facility is one of North America's largest electric bus manufacturing facilities, with an annual capacity of approximately 1,500 vehicles and employing over 750 local workers. Currently, BYD's main business in the US involves electric buses and energy storage systems for public transport and utility projects. Annual revenue in North America is estimated to range from 500 million to 1 billion USD.

A favorable ruling could create opportunities for BYD's passenger vehicle business in the US and neighboring countries. In 2025, Mexico became BYD's largest foreign market, with exports exceeding 120,000 vehicles.

If BYD wins the lawsuit, products from its Brazil factory could enter the US market with tariffs below 15%. Furthermore, a previously suspended factory project in Mexico could be revitalized.

My Anh