Polestar is outraged over a new proposal from the US government that could essentially ban its cars from the American market. The Chinese-owned electric car brand, based in Gothenburg, Sweden, is now facing a serious challenge to its US business.
The proposed rules, set to take effect in 2027, aim to reduce Chinese technology in the US. This means cars with Chinese-made hardware or software could be banned from sale, with officials saying these cars could pose security risks by potentially allowing remote control or data collection.
Even though the Polestar 3 is produced in the US alongside the Volvo EX90, it would still fall under the ban. Meanwhile, the Polestar 2 and Polestar 4, both made in China, would face a steep 100 percent tariff. This was reported by Boosted.
Polestar is frustrated, arguing that the proposal unfairly targets an American company with big investments and jobs in the US and allied countries.
“Before putting a rule in place that would essentially shut down a legally established American company—with significant investments and employees in the US and friendly nations—it should be reconsidered whether this really addresses the national security concerns,” Polestar said, as reported by Reuters.
US Commerce Secretary Gina Raimondo defended the new rules, saying the risks are real. “In extreme situations, a foreign adversary could shut down or take control of all its vehicles operating in the United States at once, causing crashes or blocking roads,” she explained.
The full ban on Chinese hardware isn’t expected to kick in until 2030, as previously reported by Boosted.
Volvo Cars, which also has major production in China, could be affected by these rules as well.
