Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTBy Marie Mannes and David ShepardsonThu, June 25, 2026 at 5:25 PM GMT+2 3 min readBy Marie Mannes and David ShepardsonSTOCKHOLM/WASHINGTON, June 25 (Reuters) - Polestar said on Thursday the Trump administration was forcing the electric-vehicle maker to stop selling vehicles in the United States beginning in the 2027 model year as Washington ramps up its crackdown on Chinese vehicles.Shares of Polestar fell 5.7% in early trading.The U.S. Department of Commerce did not grant Polestar authorization to sell cars under the Connected Vehicles Rule, which restricts the import and sale of cars with connected-vehicle technology linked to China beginning with the 2027 model year.Bluetooth, Wi-Fi, cellular connectivity and some satellite communications technologies are covered under the rules based on national security concerns linked to the ability of vehicles to collect sensitive data on American owners.The rule was adopted in January 2025 under President Joe Biden, and has been kept in place under Trump.The action marks the latest major move from the U.S. towards banning cars manufactured and exported from China, as Washington pushes to strengthen the domestic carmaking industry.Lawmakers have proposed legislation to tighten the restrictions further. Imports of Chinese EVs also face hefty tariffs.The Sweden-based company, which is majority-owned by China's Geely Holding, said it will continue to sell existing Polestar 3 and Polestar 4 vehicles in the U.S. and will also provide access to its service network.The Commerce Department did not immediately comment.Polestar had warned as early as 2024 that the connected vehicle rules would "effectively prohibit" the automaker from selling vehicles in the United States, including cars made domestically."The automotive industry is entering a new phase, based on regional dynamics. Our strategy reflects that, with Europe being our largest growth engine and our plan to manufacture Polestar 7 in Europe," Polestar CEO Michael Lohscheller said.Polestar has increasingly pivoted toward Europe as sales in the U.S. remain sluggish due to growing competitive pressures and slower consumer spending.Only 6% of its first-quarter sales came from the United States, compared with 78% from Europe.Polestar has struggled to turn a profit and has required repeated capital injections from its owner Geely and chairman Li Shufu.Its shares have fallen sharply, forcing the company to carry out a reverse stock split last year to maintain its Nasdaq listing.Ford and other automakers are scrambling to obtain U.S. government authorization to continue selling models that have been in U.S. showrooms for years, but have recently come under fire as part of the ban.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info