The new US President Donald Trump may not have to impose higher tariffs on Chinese vehicle imports. Namely, the outgoing Biden administration has given him a hand, and the US is close to banning imports of Chinese vehicles and technology. This could also pose a significant challenge for domestic automakers, as part of the system is manufactured in China.

It was announced that Biden is taking strong and decisive action to protect America from national security risks associated with the exploitation of connected vehicle supply chains in the United States. The Department of Commerce has finalized a rule that will prohibit the sale and import of connected vehicle hardware and software systems, as well as completed connected vehicles, from China and Russia. This measure is aimed primarily at China because it is difficult to see what advanced automotive systems Russia has.

White House Involvement

The White House has said that Bluetooth, cellular, satellite, and WiFi connectivity can provide greater convenience and security for consumers, but interference in supply chains by foreign adversaries poses a significant threat. The Biden administration has pointed to Chinese cyberespionage and violent intrusion operations as continuing to pose a significant threat to critical infrastructure and public safety in the United States. Recent intrusions into communications, energy, transportation, and water systems have been noted, which the Cybersecurity and Infrastructure Security Agency has blamed on state-sponsored hackers from China. The government is concerned about the mass collection of sensitive information, including geolocation data, audio and video recordings, and lifestyle patterns. As the recent attack on the Tesla Cybertruck demonstrated, modern vehicles collect a wealth of information that foreign governments could use to their advantage.

The software restrictions will come into effect for the 2027 model year. The hardware restrictions will follow for the 2030 model year. The rule only applies to passenger vehicles, but the government wants to apply similar requirements to commercial vehicles as well as vehicles weighing more than 4,536 kg.

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