Polestar will no longer be able to sell new vehicles in the U.S. after 2027 in response to new legislation — but we Canadians have nothing to worry about.
The U.S. government has put into effect a series of new rules and regulations over "connected" vehicles. Imaginatively called the U.S. Connected Vehicle Rule, it effectively limits the sale of vehicles built in China, vehicles from automakers with ownership ties to China, and/or vehicles using software developed in China, among other limitations.
Polestar says their presence in the Canadian market is unaffected. The speedy Swedes reported 94 per cent of its sales in the first quarter of 2026 took place outside of the U.S., and remains committed to its expanded lineup in light of loosened tariffs.
The first batch of software-related restrictions in the U.S. will take effect for the 2027 model year, while the first hardware restrictions will materialize in 2030. Automakers can apply for exemptions; Volvo secured an exemption earlier this year and can continue its U.S. sales.
In addition to Polestar, other vehicles and automakers could suffer similar setbacks in the U.S. Strong sellers like the Lincoln Nautilus and Buick Envision are built in China, and even Mercedes-Benz — despite its strong manufacturing presence in Alabama — could find themselves in hot water account of BAIC owning a 9.98 per cent stake.