Chinese electric vehicle maker BYD has sued the US government seeking refunds on tariffs imposed during the Trump administration, challenging the legality of duties paid on imports.
One of the world’s largest electric vehicle makers is taking the US government to court over the legacy of the trade war.
BYD has filed a lawsuit against the US government seeking refunds on tariffs imposed during the Trump administration, according to court filings cited by Tech in Asia. The case challenges duties levied under Section 301 trade measures introduced amid heightened US-China trade tensions.
The move reopens questions around how long-standing tariff policies continue to shape global EV supply chains.
A legal challenge to trade-war costs
The lawsuit targets tariffs imposed on Chinese imports during former US President Donald Trump’s term, when Washington argued that trade penalties were necessary to counter unfair practices and protect domestic industries.
BYD is seeking reimbursement for duties it says were improperly applied, joining a broader wave of companies that have pursued refunds or legal relief as trade policies face renewed scrutiny.
While the company did not disclose the exact amount sought, the case could involve substantial sums given the scale of BYD’s manufacturing operations.
Why the case matters now
The lawsuit comes at a time when electric vehicles have become strategically sensitive assets. Governments are increasingly linking EV manufacturing to national security, industrial policy, and supply-chain resilience.
For Chinese automakers, US tariffs have effectively limited direct market access, pushing firms to focus on Europe, Southeast Asia, Latin America, and domestic demand instead.
The legal action suggests BYD is reassessing how aggressively it challenges barriers—even in markets where it has limited sales exposure.
A broader pattern among importers
BYD is not alone. Numerous US importers and foreign manufacturers have pursued litigation over Trump-era tariffs, arguing that certain duties exceeded statutory authority or were applied inconsistently.
Some cases have resulted in partial refunds or settlements, while others remain unresolved, contributing to ongoing uncertainty around trade enforcement.
The outcomes could influence how future tariff regimes are structured and contested.
EVs at the center of geopolitical friction
Electric vehicles sit at the intersection of climate policy, industrial strategy, and geopolitics. US policymakers have increasingly sought to shield domestic EV production through subsidies and trade barriers, while accusing China of market distortion through state support.
BYD’s lawsuit does not directly challenge current EV-specific restrictions, but it underscores how legacy trade measures continue to ripple through the sector.
What comes next
The case could take years to resolve, and a favorable outcome for BYD would not necessarily open the US market to its vehicles. But a ruling against the tariffs could encourage more companies to seek restitution—and complicate future trade negotiations.
For now, the lawsuit highlights an uncomfortable reality for policymakers: trade wars rarely end cleanly.
Even years later, their costs—and consequences—are still being contested in court.
