On Monday, the US Commerce Department proposed banning the sale in the US of connected vehicles equipped with Chinese software and hardware systems, due to national security concerns around data collection and the possibility of the vehicles being manipulated remotely.
The ban, if approved, would be introduced as early as 2026, starting with 2027 model year vehicles. Initially, only vehicles with Chinese software would be banned. The hardware ban would be introduced from the 2030 model year.
The ban would also extend to self-driving cars tested in the US, Reuters reported on Tuesday.
Contrary to the 100% tariff on electric vehicles made in Chinawhich was introduced by the Biden administration earlier this year, the ban could result in vehicles manufactured in countries other than China being affected if they are using Chinese technology.
Even American brand vehicles can be affected, such as the Buick Envision and Lincoln Nautilusboth built in China. Some U.S.-built vehicles could also be affected, such as electric buses built in California by Chinese company BYD.
The Commerce Department is giving the public 30 days to provide feedback on the proposal, with the goal of finalizing it by January 20, 2025.
Reuters reported that Canada is also considering a similar ban.