In the United States, **BYD will contest tariffs that effectively prevent the automaker – and other brands from China – selling cars in the world’s second-largest market. ** ** .
According to CarNewsChina, which cites reports from Caijing in China, four US-based BYD subsidiaries have filed a lawsuit against the federal government in the US Court of International Trade (CIT).
But if successful, it could open up the US – second only to China in sales with around 16 million new cars sold annually – not just BYD but other Chinese automakers are now banned from the market by tariffs and other laws.
The suit challenges nine executive orders made since February 2025 – including tariffs on imports from Mexico and Canada that have been heavily affected by the automotive industry.
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The US government introduced new automotive-specific tariffs in April 2025, adding tariffs on automotive parts the following month. These were in addition to so-called ‘reciprocal’ tariffs, which the BYD suit is also challenging, along with subsequent ‘retaliatory’ tariffs.
Standard US import tariff on a Chinese-made EV is currently at the current level of 127 standard US. In Australia, we have a Free Trade Agreement (FTA), and with China.
BYD seeks permanent injunction against the tariffs and says that the International Emergency Economic Powers Act (IEEPA) under which they were imposed does not give them the legal authority to enforce tariff.
Therefore, argues BYD, the tariffs are legally invalid.
BYD suspended plans for a manufacturing plant in Mexico in mid-2025 amid uncertainty over several changes to the tariffs, which US automaker Ford said cost it an additional $US2 billion ($A2) (in addition to its current U.S. counterpart). In 2005, 83 billion) in 2025,.
Ford said late policy changes in December 2025 added to tariff costs, which were $US900 million ($A1.3 billion) more than anticipated earlier in the year, while US rival General Motors said its entire $US1.68 billion ($2.37 billion) loss between April and June 2025 was due to tariffs.
BYD’s lawsuit also challenges the validity of tariffs on India and Brazil, with the automaker running assembly plants in both countries.
A ‘stay order’ has been placed on the case, filed on January 26, 2026, pending the outcome of a New York wine importer making ‘the same argument’ and other cases are also under hold awaiting its outcome.
A recent victory in the CIT and Federal Court of Appeals has already been won by the New York wine importer who concluded that US President is not allowed to charge tariffs under IEEPA – just as BYD is arguing in its case.
But the US government has appealed that ruling on its outcome, which is due to be heard on September 30, 2026 – meaning it will not be known until the following month when BYD case was filed at the earliest possible time of hearing.
In 2024, then US President Joe Biden moved to prohibit software and hardware from China in cars based on ‘security’ concerns, an issue recently raised in Canada after it slashed tariffs from 100 per cent in 2024 to 6.1 per cent.
According to Automotive News, Ontario Premier Doug Ford saw the move, which allows up to 49,000 Chinese-made cars into Canada annually, as a mistake, with some commentators suggesting Canada will serve as a ‘back door’ to the restricted US market.
“I call it the spy car that they’re bringing in,” Mr Ford said, according to Automotive News.
It’s Chinese who are going to be listening – and I’m not making this stuff up… They will be hearing your telephone call. ” , ‘I’m sure it is worth reading.
The Australian Privacy Commissioner said yesterday it’s investigating two automakers over potential breaches of privacy law but didn’t identify the brands involved.
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