Trump administration allows Volvo to continue selling connected cars in the United States

Volvo Cars has reached a deal with the Trump administration that exempts the automaker from the U.S. crackdown on China’s connected vehicle technology.

The Swedish automaker, majority-owned by China’s Geely Holding, said Tuesday it had received specific authorization from the U.S. Department of Commerce to continue importing and selling vehicles with Chinese connected car technology in the United States. Connected car technology involves software that covers everything from syncing with phones to some automated driving features. Bloomberg was the first to report this special authorization.

Volvo was banned under rules finalized by the Biden administration in January 2025 that blocked vehicles equipped with software and hardware developed and maintained by Chinese companies on national security grounds. The rules began with model year 2027 vehicles equipped with software developed and maintained by Chinese companies. Another ban that prohibits the importation of vehicle-connected equipment begins with model year 2030 vehicles.

Volvo vehicles are primarily manufactured in Sweden and imported to the United States, with the exception of the EX90, which is assembled at the company’s South Carolina plant. But Volvo’s ties to China’s Geely – and its manufacturing operations in the country – meant the carmaker would be banned under the new rules.

Volvo said the approval followed “constructive discussions” with the Commerce Department and other U.S. officials regarding the company’s governance, technology and data security. The automaker said it can now continue its expansion plans in the United States.

The automaker announced plans in September 2025 to put two additional vehicles – the XC60 mid-size SUV and a new hybrid vehicle – into production at the South Carolina plant. In March, Volvo announced it would also shift all production of the Polestar 3, an electric vehicle from its sister company Polestar, to the U.S. factory. The Polestar 3 is currently also produced in Chengdu, China.

The rule, known as “Securing the Information and Communications Technology and Services Supply Chain: Connected Vehicles,” devotes significant time to the threat posed by vehicles equipped with automated driving systems developed by companies with ties to China.

Under these rules, Chinese companies would be prohibited from testing autonomous vehicles in the United States. Today, several of these companies, including Baidu’s Apollo Autonomous Driving LLC, Pony.ai and WeRide, have permits to test their autonomous vehicle technology (with a human safety operator behind the wheel) in California. TechCrunch contacted the Department of Motor Vehicles, the agency that regulates autonomous commercial vehicles in the state, to find out if these permits will be revoked.

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