Trump administration spares Volvo from connected-car crackdown

Volvo exemption – Volvo reached a U.S. Department of Commerce agreement that exempts it from a Biden-era crackdown on Chinese-connected vehicle technology. The approval allows Volvo to continue importing and selling vehicles with Chinese connected car software in the U.S., even

Volvo didn’t just get a polite nod from Washington—it got a specific green light to keep selling cars in the United States that use Chinese connected technology.

The Swedish automaker said Tuesday that it received authorization from the U.S. Department of Commerce to continue importing and selling vehicles equipped with Chinese connected car technology in the U.S. Connected car tech includes the software used for phone syncing and some automated driving features. Bloomberg was first to report the special authorization.

The timing lands in the shadow of a wider policy shift. Volvo had been headed toward a ban under rules finalized by the Biden administration in January 2025. Those rules blocked vehicles equipped with software and hardware developed and maintained by Chinese companies over national security concerns. The restrictions begin with 2027 model-year vehicles carrying software developed and maintained by Chinese companies. and they go further in 2030 model-year vehicles by starting a separate prohibition on the import of vehicle connected hardware.

For Volvo, the stakes weren’t abstract. The company said Volvo’s China ties—through its majority ownership by Geely Holding and its manufacturing operations in the country—meant it would fall under the new restrictions. The company’s vehicles are primarily made in Sweden and imported to the United States. except for the EX90. which is assembled at Volvo’s factory in South Carolina.

In its statement, Volvo linked the approval to “constructive discussions” with the Commerce department and other U.S. officials covering its governance, technology, and data security. With that approval in hand, Volvo said it can move forward with its expansion plans in the United States.

Volvo’s plans are already in motion. The automaker announced in September 2025 that it will bring two additional vehicles—the XC60 midsize SUV and a new hybrid vehicle—into production at its South Carolina factory. It also said in March that it would move all production of the Polestar 3. an EV from its sister company Polestar. to the U.S. factory. The Polestar 3 is currently produced in Chengdu, China.

The Commerce-linked rule Volvo benefited from sits within a broader federal framework called “Securing the Information and Communications Technology and Services Supply Chain: Connected Vehicles.” The rule spends significant time on the perceived threat of vehicles with automated driving systems developed by companies with Chinese ties.

The same rules also outline limits beyond consumer cars. Under the rules, Chinese companies would be prohibited from testing autonomous vehicles in the United States. Even with that restriction on paper, some of these companies still hold testing permits today. Several are currently approved to test their autonomous vehicle technology (with a human safety operator behind the wheel) in California. including Baidu’s Apollo Autonomous Driving LLC. Pony.ai. and WeRide. TechCrunch reached out to the Department of Motor Vehicles. the agency that regulates AVs in the state. to ask whether those permits will be revoked.

Volvo connected cars U.S. Department of Commerce Geely Biden administration Trump administration China connected technology national security autonomous vehicle testing Securing the Information and Communications Technology and Services Supply Chain: Connected Vehicles