The Trump administration banned Polestar from selling vehicles in the U.S. after the 2026 model year, the automaker said Thursday, the result of the Trump administration’s crackdown on connected vehicle technology from China where the EV brand’s parent is based. More from Headlight.News.
Polestar newest model, the Chinese-made Polestar 4.
The Trump administration has banned EV maker Polestar from selling vehicles in the U.S., beginning with the 2027 model year.
The automaker has been caught up in the Trump administration’s crackdown on Chinese technologies, the Commerce Department deciding not to “grant authorization under the current US Connected Vehicle Rule,” the automaker said in a statement.
Though the brand is based in Sweden, Polestar is owned by Chinese automaker Geely. The ban covers not only products like the Polestar 2, imported from China, but also the Polestar 3 which is assembled in South Carolina.
What’s new
The ban focuses on the Chinese-made connected car technology used by Polestar.
Polestar was spun off by Volvo in 2017 to become a standalone performance EV brand. It has slowly expanded its line-up but recently announced plans for a more aggressive product rollout.
About 6% of the brand’s sales came from the U.S. during the first quarter of this year, but Polestar was hoping to grow that with the launch of models like the Polestar 4.
All of its products use infotainment systems and other digital technologies developed by parent Geely. And that’s where the automaker has run into trouble. The Trump administration has been vigorously enforcing the Connected Vehicle Rule which restricts the use of software tied to Chinese and Russian companies starting with the 2027 model year.
Volvo gets a waiver
Volvo got a waiver to continue using essentially the same software found in Polestar products.
Ironically, Polestar’s sibling brand Volvo recently got a waiver to continue using Chinese software in its products. Volvo imports vehicles from both China and Russia, while also producing some of its models at a plant outside Charleston, South Carolina.
“The process is carried out on a case-by-case basis and the issuance of a specific authorization follows constructive discussions with the US Department of Commerce and other US officials regarding Volvo Cars’ governance, technology and data security,” Volvo said last month.
There has been no explanation from the Commerce Dept. as to why Polestar was not granted permission to use essentially the same software as Volvo.
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China crackdown
Even the Polestar products built in South Carolina will now be banned.
The Trump administration began cracking down on Chinese imports during its first term in the White House. Subsequently, Joe Biden added to the restrictions on auto imports during his first and only term. Back in office, Pres. Donald Trump has further escalated the U.S.-China trade war – though he did signal earlier this year a potential interest in allowing Chinese automakers to set up plants in the United States.
Though first put in place under Biden, the Connected Car Rule remains in place as a key part of the Trump administration’s crackdown on Chinese auto imports. The rule also covers American-made models using Chinese software. That’s on top of tariffs running over 100% on vehicles like the Polestar 2 that are built in China.
Separately, the White House has enacted a restriction on Chinese and Russian connected vehicle hardware that will go into effect in 2030.
What happens to Polestar now? And who else might be impacted?
The Lincoln Nautilus is another Chinese-made vehicle that could face a ban due to its connected car technology.
While the U.S. was seen as an import market, Polestar hasn’t had much momentum building sales at a time when the overall American EV market has gone into a slump. On the flip side, it has been reporting record sales in Europe and some other overseas markets.
“Our record sales in 2025 and the first quarter of 2026 show that we are making strong progress, with several new market launches taking place in Europe this year.” CEO Michael Lohscheller said. “In addition, we will continue to invest in markets where we have opportunities to continue to grow, like Southeast Asia, Eastern Europe, Latin America and Canada.”
As for the U.S., the automaker said in a statement that “existing Polestar owners and lease customers will continue to receive the same level of support and access to service as they do today.” It added that “existing warranties remain in effect and will continue to be honored in accordance with their terms and conditions.”
Polestar might not be the only automaker to face problems related to Chinese software. Ford’s luxury brand Lincoln is still waiting for a decision by the Commerce Dept. affecting the future of its Nautilus model. That SUV is also imported from China and could also be banned under the Connected Car Rule. Nautilus is Lincoln’s best-selling model, the automaker delivering more than 33,000 of the SUVs in 2025.
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