Chinese EV Maker BYD Sues US Government Over Tariffs

BYD subsidiaries file lawsuit challenging import tariffs, seeking to expand sales in the US market.

Published on Feb. 10, 2026

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Chinese electric vehicle manufacturer BYD has filed a lawsuit against the US federal government, challenging the tariffs imposed on its products under the International Emergency Economic Powers Act (IEEPA). The lawsuit, brought by four BYD subsidiaries based in the US, argues that the government agencies exceeded their authority in imposing these tariffs and is seeking permanent injunctions, refunds, and litigation costs.

Why it matters

BYD's lawsuit represents a broader trend of Chinese companies using legal channels to assert their rights and interests in the US market. If successful, it could set a precedent for other Chinese firms looking to expand their presence in the US, potentially increasing competition and offering more affordable electric vehicle options for American consumers.

The details

The lawsuit was filed by BYD America LLC, BYD Coach & Bus LLC, BYD Energy LLC, and BYD Motors LLC against the federal government, including officials from the Department of Homeland Security, Customs and Border Protection, the Office of the US Trade Representative, and the Treasury Department. It challenges nine executive orders and amendments issued since February 2025, targeting tariffs at the borders with Mexico and Canada, as well as tariffs on Chinese imports related to fentanyl.

  • The lawsuit was filed in February 2026.

The players

BYD America LLC

A subsidiary of Chinese electric vehicle manufacturer BYD, operating a manufacturing facility in Lancaster, California.

Sun Xiaohong

Secretary-general of the automotive branch of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, who commented on the potential impact of BYD's lawsuit.

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What they’re saying

“BYD's move follows a growing trend of companies using legal channels to safeguard their legitimate rights and interests.”

— Sun Xiaohong, Secretary-general, automotive branch of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (Global Times)

What’s next

The lawsuit still faces legal hurdles, but if successful, it could set an important precedent for other Chinese companies looking to expand their presence in the US market.

The takeaway

BYD's lawsuit highlights the ongoing tensions between the US and China over trade and market access, as Chinese firms seek to navigate the complex regulatory environment and assert their rights through legal channels. The outcome of this case could have broader implications for the competitiveness of the US electric vehicle market.