Volvo Cars Granted US Authorization to Import Connected Cars Despite China Links Ban

Volvo Cars, partly owned by China’s Zhejiang Geely Holding, has been granted a US authorization to import connected cars despite a ban on vehicles with Chinese links starting from model year 2027. The US Department of Commerce informed the Swedish automaker that it may import these vehicles, following a case-by-case review. This decision comes after a series of protectionist measures, including a 100% tariff on Chinese imports levied by then-President Biden in 2024, and a subsequent ban on connected vehicles built by China-linked companies. The Trump administration later upheld this ban, effective for software from model year 2027 and hardware from 2030. Volvo’s approval, granted under the 'Securing the Information and Communications Technology and Services Supply Chain: Connected Vehicles' rule, suggests that other Chinese EVs might still enter the US market if they meet specific requirements. Polestar, also affected by the rule, is working with US authorities to comply. This development indicates a nuanced approach by the US, balancing protectionism with selective approvals for companies meeting stringent criteria.