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Volvo Wins U.S. Clearance Over China-Tied Vehicle Ban
Specific Authorization Follows Talks on Governance, Technology and Data Security
Key Takeaways:
- Volvo Car AB said May 26 it received Commerce Department authorization to keep importing and selling connected passenger vehicles in the U.S.
- The decision matters because Volvo’s Chinese ownership had raised questions under a ban on China-tied connected vehicles starting with the 2027 model year.
- U.S. officials said the approval comes as Volvo awaits 2027 shipments and does not signal approvals for other Chinese-owned automakers.
The Trump administration reached an agreement with Volvo Car AB that will allow the automaker to avoid a U.S. ban on connected vehicles tied to China.
Volvo, which is majority-owned by China’s Zhejiang Geely Holding Group, received a specific authorization from the U.S. Commerce Department allowing it to continue importing and selling connected passenger vehicles in the U.S., the automaker said May 26, confirming an earlier report by Bloomberg News.
Volvo builds vehicles in the U.S. at a plant in Charleston, S.C., where it has invested more than $1.3 billion. The company also imports models from Sweden, where it’s headquartered, and started assembling one of its better-selling SUVs in Belgium last year in part due to the U.S. raising tariffs on cars manufactured in China.
The U.S. ban on connected vehicles and related hardware and software technology with ties to China takes effect starting with the 2027 model year. Volvo’s Chinese ownership had raised questions about how the company would be affected by the policy, including whether it could potentially be barred from selling its vehicles in the U.S., the world’s second-largest auto market.
Representatives for the White House and Commerce Department did not immediately respond to requests for comment.
The rule implementing the ban was finalized in January 2025, shortly before President Donald Trump began his second term in office. It went into effect in March of that year, after Trump was inaugurated.
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Volvo said the authorization followed “constructive discussions with the U.S. Department of Commerce and other U.S. officials regarding Volvo Cars’ governance, technology and data security,” the carmaker said in its statement.
“With this specific authorization, Volvo Cars can continue its growth plans in the U.S.,” the company said.
The timing of the decision comes as the company awaits shipments of 2027 model year vehicles. It is unrelated to Trump’s recent visit to Beijing, nor is it a sign that his administration is considering approvals for other Chinese-owned carmakers, said U.S. officials familiar with the matter, who asked for anonymity to discuss the decision.
Volvo Car CEO Håkan Samuelsson told Bloomberg earlier this year that it would be “unthinkable” for Volvo to be banned from selling in the U.S. He said the company was working to receive approval and expected the Commerce Department to announce a decision by this summer.
“It is about showing how we handle data, that U.S. customer data isn’t transferred to China,” Samuelsson said in March. “These are basic requirements, and our setup is no different from other Western manufacturers.”
