US seeks to ban import of specific connected and automated vehicle technologies from “countries of concern”

Coming close on the heels of a tariff war between the world’s two largest economies, this new move by US lawmakers basically seeks to counter attempts by companies from mainland China to circumvent steep US tariffs by exporting cars via Mexico — often considered a back door to the US market.

The US Commerce Department has issued a notice of proposed rulemaking (NPRM), which, if approved, would ban the import and sale of certain connected vehicle systems designed, developed, produced or supplied by entities from “countries of concern” — specifically the People’s Republic of China (PRC) and Russia. The NPRM follows a process initiated by President Joe Biden in February and is based on public feedback to an earlier notice issued by the Commerce Department, which sought to address national security risks associated with certain technologies in connected vehicles.