The US Department of Commerce told Volvo Cars it may import connected cars into the United States. The decision comes despite a rule that restricts connected-vehicle software with Chinese links from model year 2027 onward. Volvo is partly owned by China’s Zhejiang Geely Holding. The US has used protectionist measures in autos for decades, including the 1964 “chicken tax” that limited foreign-built pickup trucks. More recently, US policy has focused on limiting Chinese auto imports. In 2024, a 100% tariff was imposed on Chinese imports, followed by a Commerce rule restricting connected vehicles built by companies owned by or linked to China. The ban is scheduled to expand for software and hardware, but automakers can petition for exemptions and Volvo appears likely to receive one.
"The government has told the Swedish automaker, which is partly owned by China's Zhejiang Geely Holding, that it may import connected cars into the US, despite a ban on such vehicle software with Chinese links from model year 2027 onward."
"In 2024, then-President Biden first levied a 100 percent tariff on Chinese imports, followed by a new Commerce rule that prohibited imports of any connected vehicles built by companies owned by or with links to China."
"The ban would go into effect for software from model year 2027 as planned, with connected vehicle hardware forbidden from model year 2030 onward. Automakers can petition the government for an exemption, though, and it seems they will be granted."
#us-automotive-policy #connected-cars #china-linked-imports #tariffs-and-trade-restrictions #volvo-cars
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