Volvo gets US government approval to bypass Chinese connected-car ban

Source: Ars Technica

US Department of Commerce approval

Volvo Cars received notice from the U.S. Department of Commerce that it may import connected cars into the United States, despite a ban on vehicle software with Chinese links that is set to take effect for model year 2027 onward. The approval comes even though Volvo is partially owned by China’s Zhejiang Geely Holding.

Historical context

Protectionism is not new to the U.S. automotive sector; the absence of foreign‑built pickup trucks on U.S. roads remains a legacy of the 1964 “chicken tax.” More recently, bipartisan efforts have focused on keeping China out of the market. In 2024, then‑President Biden imposed a 100 percent tariff on Chinese imports and introduced a Commerce rule that prohibited the import of any connected vehicles built by companies owned by or linked to China — see the original announcement here.

Policy timeline and exemptions

The subsequent administration continued the same trajectory. The ban is scheduled to apply to software from model year 2027 and to connected‑vehicle hardware from model year 2030. Automakers can petition the government for an exemption, and Volvo appears to have secured one.