On Monday, the U.S. Commerce Department announced a proposal to prohibit the sale of connected vehicles that contain Chinese software and hardware systems, citing national security risks related to data collection and the potential for remote manipulation of the vehicles.
If sanctioned, this restriction would take effect in 2026, beginning with vehicles from the 2027 model year that utilize Chinese software. The hardware ban is set to follow, coming into effect with the 2030 model year.
The proposed ban would also apply to autonomous vehicles currently undergoing testing in the U.S., according to a report from Reuters on Tuesday.
In contrast to the 100% tariff on electric vehicles manufactured in China, which the Biden administration implemented earlier this year, this ban could have repercussions for vehicles made in other countries if they incorporate Chinese technology.
This situation may also impact American brands like the Buick Envision and Lincoln Nautilus, as both models are manufactured in China. Additionally, some domestically produced vehicles, such as electric buses made by the Chinese company BYD in California, might be affected.
The Commerce Department is inviting the public to submit feedback on the proposal for 30 days, aiming to finalize the regulation by January 20, 2025.
Furthermore, Reuters has reported that Canada is also contemplating a similar ban.
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