Commerce Department ruling bars Geely-owned EV brand from US market starting model year 2027 under connected vehicle regulations.
The US Department of Commerce denied Polestar authorization to sell vehicles in the United States from model year 2027, citing rules targeting Chinese-linked software and hardware in connected vehicles. The decision marks a granular application of technology trade controls, distinguishing between brands based on supply chain origins rather than ownership or assembly location.
Polestar’s exclusion contrasts with Volvo’s exemption, highlighting regulators’ focus on component-level scrutiny. The ruling signals broader decoupling in consumer technology sectors, with implications for any company integrating Chinese-linked tech. Investors in Geely face reduced growth prospects for Polestar, a key brand, as 2030 hardware restrictions loom.
The move reflects Washington’s use of targeted trade levers to penalize specific firms without broad tariffs, escalating US-China economic tensions. The connected vehicle rule, finalized in January 2025, underscores the shift toward sector-specific restrictions.