America Bans Polestar From Selling Cars Starting Next Year

Jacob OlivaThu, June 25, 2026 at 11:03 PM UTC

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James OchoaVolvo Gets the Green Light, Polestar Doesn't

Volvo pulled off a win, getting the green light to keep selling its connected cars in the US – even with Chinese automaker Geely calling the shots behind the scenes. Polestar, on the other hand, just hit a brick wall.

In an announcement, Polestar said the US Department of Commerce just slammed the door shut on its future sales, starting with the 2027 model year. Once the current crop of Polestars runs its course, that’s it – no new models for America.

For now, Polestar will keep moving the last of its 3s and 4s off US lots, and owners can still get their cars serviced. But the brand’s future in one of the world’s biggest car markets? That’s looking shaky.

Why America Said No

Polestar says the ban comes down to the US Commerce Department’s Connected Vehicle Rule – a regulation cooked up at the tail end of the Biden era and kept alive under Trump.

For the uninitiated, the rule’s goal is to keep cars tied to China or Russia out of US garages. Officials worry these connected vehicles are data vacuums on wheels, potentially handing over sensitive information or granting remote access to foreign governments.

Polestar’s big problem is its parent company: Geely, based in China. That’s enough to get it caught in the regulatory net, even though none of its US-bound cars actually roll out of Chinese factories. The Polestar 3 is built in South Carolina, and the Polestar 4 for America comes from South Korea. The former was intended for export to the rest of the world.

That leaves the US-built Polestar 3 in limbo, with no roadmap for what happens after the current models run their course.

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PolestarAnother Step in the Crackdown on Chinese Automakers

Polestar’s troubles are just the latest sign that America is getting tougher on carmakers with Chinese ties. Over the past few years, Washington has steadily tightened restrictions on Chinese-made vehicles and related technologies over national security concerns. High import tariffs have already made it difficult for Chinese brands to enter the American market, while the Connected Vehicle Rule extends those restrictions to software and ownership structures.

The US government hasn’t stopped there. BYD, China’s biggest exporter of vehicles, landed on a blacklist over supposed military ties, and regulators are still poking around Chinese-made car parts that could get hit with even more rules soon.

So Polestar is looking elsewhere. Nearly all of its first-quarter sales came from outside the US, and Europe is now its main growth engine. CEO Michael Lohscheller says the car world is splitting into regions, and the Polestar 7 will be built in Europe to match that new reality.

Polestar

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This story was originally published by Autoblog on Jun 25, 2026, where it first appeared in the News section. Add Autoblog as a Preferred Source by clicking here.

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Source: “AOL Money”