The U.S. Commerce Department on Monday proposed a ban on the U.S. sale of connected vehicles fitted with Chinese software and hardware systems, due to national security concerns surrounding the collection of data, and the possibility the vehicles may be manipulated remotely.
The ban, if approved, would be introduced as soon as 2026, starting with 2027 model year vehicles. Initially only vehicles with Chinese software would be banned. The hardware ban would be introduced starting with the 2030 model year.
The ban would also extend to self-driving cars being tested in the U.S., Reuters reported on Tuesday.
Unlike the 100% tariff on Chinese-made electric vehicles, which was introduced by the Biden administration earlier this year, the ban could lead to vehicles built in countries other than China being affected, if they are using the Chinese technology.
Even vehicles from American brands may be affected, such as the Buick Envision and Lincoln Nautilus, both of which are built in China. Some vehicles built in the U.S. may also be affected, like electric buses built in California by Chinese company BYD.
The Commerce Department is allowing the public 30 days to provide feedback on the proposal, with the goal of finalizing it by Jan. 20, 2025.
Reuters reported that Canada is also considering a similar ban.
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