Chinese EV maker BYD, widely seen as Tesla’s biggest arch-nemesis, has filed a lawsuit against the U.S. government to recover tariffs paid under President Donald Trump and challenge the legal authority used to impose them.

In court filings, BYD argues that the administration exceeded its authority by relying on the International Emergency Economic Powers Act to levy tariffs on imported goods. The company says the statute does not authorize border taxes, noting that the law does not explicitly reference tariffs or similar measures.

The lawsuit was filed on January 26 in the U.S. Court of International Trade by four of BYD’s U.S.-based subsidiaries. In its complaint, the company said it needed to bring an independent legal challenge to preserve its ability to recover tariffs already paid since April of last year.

That makes BYD the first Chinese automaker to formally challenge U.S. tariffs in court. It’s part of a growing pile of lawsuits from companies with U.S. operations arguing that the government leaned too heavily on emergency powers when rolling out trade penalties.

A separate, closely watched case is also moving through the courts, with the Supreme Court of the United States expected to weigh in on the legality of the tariff framework. U.S. Trade Representative Jamieson Greer has said the court is proceeding cautiously given the significant economic stakes involved.

While BYD does not sell passenger vehicles in the U.S., it maintains a huge presence through its commercial and energy businesses. The company operates in electric buses, commercial trucks, batteries, energy storage systems, and solar technology. Its subsidiary BYD North America employs roughly 750 workers at a truck manufacturing facility in Lancaster, according to the company website.

Trump has repeatedly said Chinese automakers pose a long-term threat to the U.S. auto industry, framing tariffs as a necessary response to unfair competition. At the same time, he has suggested he would welcome Chinese manufacturers that choose to build vehicles in the United States rather than export them.

The lawsuit is essentially a stress test of Trump’s tariff strategy. Lose, and the levies stand. Win, and a lot of companies may start checking old invoices.

At the time of publishing this article, Stocks.News holds positions in Tesla as mentioned in the article.