Polestar says Trump administration forcing it to end U.S. sales Stockholm/Washington — 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 7.2% in midafternoon trading Thursday. 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 President Donald 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