BYD sues U.S. government for billions in Trump-era auto tariff refunds

China’s BYD has filed a lawsuit at the U.S. Court of International Trade (case No. 26-00847) seeking billions of dollars in refunds for tariffs imposed since April under former President Donald Trump’s emergency tariff programme. Four BYD U.S. subsidiaries argue the International Emergency Economic Powers Act (IEEPA) does not authorize tariffs, saying the law’s text never uses the word “tariff.” BYD says it sued to preserve its right to recover amounts already paid should courts rule the tariff programme unlawful. The action is the first time a Chinese automaker has sued the U.S. over these tariffs; thousands of other firms have filed related challenges and the U.S. Supreme Court is also reviewing the programme. BYD continues substantial U.S. operations — including a Lancaster, California plant (≈750 employees) and sales in buses, trucks, batteries, solar and energy storage — and says it intends to keep building in the U.S. Meanwhile, BYD is advancing battery tech: sulfide-based solid-state batteries with limited production targeted for 2027 and a third-generation sodium-ion platform reportedly rated to ~10,000 cycles. BYD’s European sales climbed sharply in 2025 (27,678 registrations in December; 187,657 for the year), narrowing the gap with Tesla. Key points for traders: potential large refunds could affect BYD’s cash flow and U.S.-China trade tensions; a favorable legal outcome would reduce tariff-related cost risk for BYD and suppliers, while an adverse ruling would sustain margin pressure and supply-chain uncertainty.