You may have heard recently in the news talks about potential tariffs, added costs to foreign goods to make them less capable of competing with their domestic counterparts, but what if the foreign goods were prohibited entirely? That is what the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) wants to do with a Notice of Proposed Rulemaking (NPRM) entered into the Federal Register on September 25th, which would embargo technological components from China and Russia for vehicles in the United States.

Details

The U.S. Secretary of Commerce Gina Raimondo put it succinctly as to why the Department is pushing for this ban.

“Cars today have cameras, microphones, GPS tracking, and other technologies connected to the internet. It doesn’t take much imagination to understand how a foreign adversary with access to this information could pose a serious risk to both our national security and the privacy of U.S. citizens. To address these national security concerns, the Commerce Department is taking targeted, proactive steps to keep PRC and Russian-manufactured technologies off American roads.”

Should the NPRM go through, it would take effect for software starting in 2027 and hardware effective 2030. Additionally, it would prohibit manufacturers connected to the Chinese or Russian government from selling cars with sophisticated technology, even if the machines are built within US borders.

Conclusion

This decision, should it become official regulation, has strong implications for the autonomous driving industry, including commercial trucks. The NPRM specifically mentions the ban of Automated Driving Systems (ADS) from both China and Russia. China often tries to get its foot in the door with developments of technology, so throwing a wrench in their plans to access the United States market could prove to delay the development and integration of the technology for a few years. Additionally, any vehicles with ADS will likely cost more due to the decrease in supply from foreign producers.

The regulation can be read in full on its webpage in the Federal Register. Comments are allowed from the public for thirty days from the date it is entered into the Federal Register.

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