Volvo avoids U.S. ban on connected vehicles tied to China

The Trump administration reached an agreement with Volvo Car AB that will allow the automaker to avoid a U.S. ban on connected vehicles tied to China.

Volvo, which is majority-owned by China’s Zhejiang Geely Holding Group, received a specific authorization from the U.S. Commerce Department allowing it to continue importing and selling connected passenger vehicles in the U.S., the automaker said Tuesday, confirming an earlier report by Bloomberg News.

The agreement spares Volvo from one of the U.S. barriers that have effectively walled off the American market from Chinese cars over national and economic security concerns. Along with the Commerce Department’s ban on Chinese connected vehicle technology, Chinese cars also face punitive tariffs, including a 100% import tax on electric vehicles from the country.

Read more at Bloomberg