Polestar says US sales ban came as a surprise after mixed signals from Trump administration

Polestar claims the Trump administration gave it the impression that its application to continue selling electric vehicles in the United States would be approved, citing meetings with the Bureau of Industry and Security. Despite Volvo’s May approval to import cars despite Geely’s Chinese ownership, Polestar’s request submitted on May 29, 2025 was denied in June, prompting a plan to cease U.S. sales starting with the 2027 model year.

The company proposed several mitigation steps, including regular audits and geographic data restrictions, but the administration said it already had sufficient information and did not engage further. Peter Wexler, Polestar’s head of product, highlighted a comment from Under Secretary Jeffrey Kessler that Polestar could reasonably expect approval if Volvo was allowed. The firm is still pressing for a rationale behind the denial and is being sued by Prestige Imports, which alleges Polestar engineered its own market exit.