A February 20 US Supreme Court ruling limiting the use of emergency powers to impose tariffs has added new legal context to BYD’s ongoing lawsuit against the U.S. government, though most tariffs affecting imported vehicles remain unchanged.
The court voted 6–3 that tariffs imposed under the International Emergency Economic Powers Act exceeded presidential authority because tariff-setting powers are assigned to Congress. The decision invalidated tariffs imposed using that specific emergency law and raised the possibility that companies could seek refunds for duties collected since 2025, according to Zaobao.
BYD filed its lawsuit on January 26, 2026, in the U.S. Court of International Trade, challenging tariff measures imposed since April 2025. Chinese government-linked disclosures show the case was filed by four BYD-related entities seeking both refunds and a legal declaration that the tariff orders were unlawful. The lawsuit remains under judicial review.
However, the Supreme Court ruling does not directly remove most automotive tariffs currently affecting Chinese vehicle imports. U.S. tariffs on vehicles and components are primarily enforced under Section 232 national security provisions and Section 301 trade enforcement measures, which were not addressed in the February ruling. Chinese legal analysis published February 20 by Sohu noted that those tariffs continue to apply independently of the emergency powers law invalidated by the court.
Industry analysts cited in recent coverage also highlighted procedural uncertainty. Although the ruling may strengthen challenges to tariffs imposed under emergency authority, further litigation would be required to determine whether companies such as BYD can recover previously paid duties or benefit from reduced import barriers.
The ruling also comes as U.S. political leaders signal potential alternative trade actions. Former President Donald Trump stated on February 21 that his administration would consider alternative legal pathways to impose tariffs, reflecting continued policy focus on trade protection.
BYD currently sells electric buses and commercial vehicles in North America but has not introduced passenger cars into the U.S. market. No U.S. passenger vehicle launch timeline has been confirmed as of February 2026.
The Supreme Court decision establishes a constitutional limit on tariff authority under emergency powers, but does not change the broader tariff framework affecting Chinese electric vehicle imports. Future market access for Chinese automakers will depend on ongoing court proceedings, regulatory policy, and trade enforcement decisions.
Follow us for ev updates