US car prices could rise, sales could fall due to Biden’s ban on electric vehicles in China

In some circles, Chinese electric cars are seen as the biggest threat to America because they will spy on us, steal our data and is driving the American auto industry to ruin. Because of this, lawmakers across the country are working on legislation that would limits the availability of electric vehicles in China here in the Land of the Free, but those very laws could do just as much damage to the American auto world.

Experts now predict that a strict ban on the import and sale of cars and parts from China could dramatically affect car sales across the country and raise prices for some models. Reuters reports. The proposed tightening a restrictions on the import of connected Auto parts and complete vehicles from China could reduce US car sales by up to 25,000 vehicles annually:

U.S. automakers and others selling in the United States “may be less competitive in the global market because of the relatively higher prices of their vehicles,” the department said. It has been estimated that between 1,680 and 25,841 fewer vehicles will be sold annually because of the rule.

Acting to reduce national security vulnerabilities that could be exploited by China, the department estimated that the rule could bar $1.5 billion to $2.3 billion in vehicle entries from Chinese or Russian companies for the vehicles sold in the United States.

It previously said the proposal would amount to an effective ban on Chinese vehicles because they would all have internet-connected vehicle software and hardware, but proposed a process for companies to seek exemptions.

Current proposals to restrict a the availability of Chinese cars and the parts will go into effect for the 2027 model years. Initially, the ban would include a restriction on software from China, but that would be followed by a restriction on Chinese hardware from 2030.

The rules are being drafted by the Biden administration in an attempt to reduce “the chance of a catastrophic attack,” Reuters reports. Without Chinese software and hardware in our carsthe American people would be protected from data theft and “remote manipulation of connected vehicles,” the site explains.

A version of this article originally appeared on Jalopnik’s The Morning Shift.