Swedish electric vehicle manufacturer Polestar, owned by Chinese automotive giant Geely, will no longer be able to sell its new cars in the U.S. market, the company said on Thursday, as the Trump administration’s Department of Commerce refused to authorize the company to do so.

The decision was made as part of the administration’s so-called “Connected Vehicle Rule” that restricts cars with Chinese software or hardware from being sold in the U.S. Polestar had requested a special authorization to sell its vehicles in the U.S.

Polestar said it will continue selling its existing stock of Polestar 3 and Polestar 4 vehicles in the U.S., and that it will “continue to support customers, including providing access to its service network.” But the company also pointed out in a press release that 94% of its retail sales volume in the first quarter of 2026 came from markets outside the U.S.

The company said it is now “increasing its strategic focus on Europe.”

The decision to effectively ban Polestar from the U.S. market just a few months after the Trump administration granted the same authorization to sell vehicles here to Volvo — Polestar’s sibling company, which is also owned by Geely.