The mechanism will apply to “certain textile and apparel goods from Bangladesh using U.S.-produced cotton and man-made fiber."

Trump's tariffs last year represented the largest U.S. tax increase as a percent of GDP since 1993, while the current average effective tariff rate of 10% is the highest since 1946.

Court documents detailed testimony from 39 migrant workers who claimed that pay for some riders came in more than 75% under the poverty threshold.

For manufacturers, distributors and import-dependent businesses, the tariff environment of 2025 has led to the clearest runway for U.S. reindustrialization in decades.

BYD's lawsuit echoes other recent court challenges that have questioned the legality of President Donald Trump's tariffs. 

The manufacturer is not alone in tallying the cost of adjusting to slower-than-expected EV sales.

The Trump administration has been in a standoff with state and local officials since last year, over a new rule that bars contracting requirements based on race or sex.

The proposed new tariff system is part of a batch of reforms Carney announced on February 5 to try to bolster an automotive sector that's been pressured by U.S. tariffs.

The initiative will be rolled out in phases, with the state-backed consortium focused first on acquiring and operating container vessels to serve key trade routes.

The move is part of a broader effort by to counter China's ability to use its dominance of the industry as leverage in trade negotiations.