Biden finalizes ban against smart cars from China and Russia

President Joe Biden will close out his term in office implementing more definitive measures aimed at protecting U.S. automotive manufacturing and addressing national security concerns. But how will it all play out when President-elect Trump assumes office? 

First things first: Following the Biden administration’s announcement in 2024 of its intent to block smart cars coming into the US from China and Russia, US officials have moved to finalize the ban and expand the scope of the measures, as reported by Bloomberg.

• The ban prohibits the import or sale of connected vehicles with pieces of hardware or software that have a “sufficient nexus” to China or Russia or the individual sale of those components. 

• As announced, the measure also prohibits manufacturers with ties to Russia and China from selling US-made vehicles in the US.

• US officials also proposed launching an inquiry to expand the bans to commercial vehicles like buses and trucks.

Digging deeper: In addition to the automotive ban, the Biden administration also unveiled an executive order that seeks to solidify the US’s position in the rapidly growing business of artificial intelligence. 

• As detailed, the executive order would enable companies to lease federal land to build AI data centers, accelerating the speed of ramping up AI infrastructure in America.

• The measure aligns with recent trade restrictions announced by President Biden that limit the number of chips that US-based tech companies can sell to data centers outside the US.     

Biden said the executive order and restrictions regarding artificial intelligence are also viewed as a vital in enhancing economic competitiveness, national security, AI safety, and clean energy.   

Looking ahead:  Given Trump’s tough stance on China and talk of imposing tariffs on Chinese imports, there’s a general sense that the President-elect will uphold the smart car bans that the Biden administration has put in place. Trump’s position on the Biden administration’s new AI measures is less clear, given that the President-elect has vowed to repeal an executive order regarding AI signed by Biden in 2023.   

Become an automotive insider in just 5 minutes.

Get the weekly email that delivers transparent insights into the car market.

Join 90,000+ others now, it's free:

In today's automotive landscape, car buyers invest more time than ever in researching, considering, and comparing options. But for dealers, the challenge lies in pinpointing the audience ready to make a purchase.

Enter Premier by Edmunds.

Premier offers dealers a groundbreaking way to connect with in-market car shoppers precisely when, where, and how they prefer. With over 20 million monthly visits, Edmunds.com is the go-to destination for buyers seeking market insights, expert advice, and budget tools to make informed decisions.

Through Edmunds Premier, dealers gain access to this highly coveted audience. Simply list your new and used inventory on Edmunds, and watch as qualified, in-market traffic flows directly to your vehicle detail pages on your website.

Don't miss out on this opportunity to elevate your dealership's visibility and sales performance. You can sign up for Premier today at Edmunds.com/CDG.