Swedish EV manufacturer Polestar has been informed by federal officials that its vehicles can no longer be sold in the United States starting with the 2027 model year.

The determination was made by the U.S. Department of Commerce, whose secretary, Howard Lutnick, is a member of President Donald Trump’s cabinet. Trump inherited former president Joe Biden’s Connected Vehicle Rule, which prohibits the sale of hardware and software developed by “foreign adversaries,” specifically targeting China and Russia.

Polestar is majority-owned by Hangzhou, China-based Geely Holding. The two models sold in the U.S. are the Polestar 4 CUV, which is built in China and South Korea, and the Polestar 3 SUV, which is built in China and at a Ridgeville, S.C., plant.

The factory sought an exemption to the Biden ban. Geely-owned Volvo Cars was permitted to continue selling new units stateside amid reports suggesting the factory reengineered its systems, rendering them unable to share vehicle or driver data with its parent company.

In Polestar’s statement, executives say they will shift their focus to Europe, which accounts for nearly 80% of global sales.

“Our record sales in 2025 and the first quarter of 2026 show that we are making strong progress, with several new market launches taking place in Europe this year,” writes CEO Michael Lohscheller. “In addition, we will continue to invest in markets where we have opportunities to continue to grow, like Southeast Asia, Eastern Europe, Latin America and Canada.”

Read more at Polestar