Polestar said the Trump administration is forcing it to end US sales beginning with the 2027 model year after the US Commerce Department denied authorization under the Connected Vehicles Rule. The rule restricts the import and sale of vehicles with connected-vehicle technology linked to China starting in 2027, citing national-security concerns related to a vehicle’s ability to collect sensitive data.

Polestar said it will continue selling existing Polestar 3 and Polestar 4 vehicles in the United States and will provide access to its service network, but it said it would not appeal the denial. The company framed the decision as part of a broader shift in strategy, pivoting toward Europe, where it receives most of its sales.

The Connected Vehicles Rule was adopted in January 2025 and is aimed at technologies such as Bluetooth, Wi‑Fi, cellular connectivity, and some satellite communications. The action is described as another step in US efforts to tighten restrictions on Chinese-linked vehicles amid tariffs and further proposed legislation targeting the China-linked EV supply chain.

The denial also raised questions about production plans for Polestar’s US model. In related developments, Volvo said it was consolidating Polestar 3 production at its South Carolina plant rather than building the model in China, though it said it was too early to determine whether recent changes would alter those plans.