U.S. Supreme Court Rejects IEEPA Tariff Authority; BYD Subsidiary Sues for Refund

The U.S. Supreme Court recently ruled that the Trump administration lacked legal authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). Prior to this ruling, BYD had already filed a lawsuit on January 26, 2025, with the U.S. Court of International Trade through its four U.S.-based subsidiaries—BYD America, BYD Coach, BYD Energy, and BYD Auto LLC—seeking refunds of IEEPA tariffs already paid. As importers, these subsidiaries suffered financial losses due to the imposition of "substantial" tariffs on imported components. The complaint argued that IEEPA does not authorize the President to levy taxes and that the relevant executive orders violate both the U.S. Constitution and the "non-delegation doctrine." Currently, U.S. Customs has ceased collecting IEEPA tariffs, but the refund process remains unclear. Experts note that refunds will not occur automatically and must be pursued through judicial and administrative channels. BYD’s case is still pending and has become a notable example of a Chinese company using U.S. legal mechanisms to protect its rights.