Trump Administration Grants Volvo Permission to Sell Connected Cars in the U.S.

Volvo Cars has reached an agreement with the Trump administration, enabling the automaker to sidestep a U.S. crackdown on vehicle technologies linked to China.

The Swedish firm, largely owned by China’s Geely Holding, announced on Tuesday that it received specific clearance from the U.S. Department of Commerce to continue importing and selling vehicles equipped with Chinese connected car technology in the U.S. This technology encompasses software that supports various functions, from phone synchronization to certain automated driving capabilities. Bloomberg first reported on this special clearance.

Volvo was facing restrictions under regulations finalized by the Biden administration in January 2025, intended to prohibit vehicles using software and hardware developed and managed by Chinese companies due to national security issues. These rules apply to 2027 model-year vehicles that include such technology. Furthermore, an additional ban on importing hardware related to vehicle connectivity will come into effect for 2030 model-year vehicles.

Most Volvo vehicles are produced in Sweden and transported to the U.S., with the exception of the EX90, which is built at the company’s plant in South Carolina. Nevertheless, Volvo’s ties with Geely and its manufacturing operations in China put it at risk from the new regulations.

Volvo indicated that the approval was the result of “constructive discussions” with the Commerce Department and other U.S. officials concerning the company’s governance, technological expertise, and data security. The automaker noted that it can now move forward with its expansion plans in the United States.

In September 2025, Volvo announced intentions to launch two additional vehicles — the XC60 midsize SUV and a new hybrid — in its South Carolina facility. In March, the company shared that production of the Polestar 3, an electric vehicle from its sister brand Polestar, will also be relocated to this U.S. plant. The Polestar 3 is currently being produced in Chengdu, China.

The regulation, named “Securing the Information and Communications Technology and Services Supply Chain: Connected Vehicles,” stresses issues related to vehicles with automated driving systems developed by companies connected to China.

As per the guidelines, Chinese firms are prohibited from testing autonomous vehicles in the U.S. At present, several companies, such as Baidu’s Apollo Autonomous Driving LLC, Pony.ai, and WeRide, hold licenses to test their autonomous vehicle technology (with a human safety operator on board) in California. TechCrunch has reached out to the Department of Motor Vehicles, which regulates AV activity in the state, about the potential cancellation of these licenses.