WASHINGTON, Sept 27 (Reuters) - The Commerce Department

said Friday that new rules proposed to ban Chinese connected

vehicles and key Chinese software and vehicle hardware in

American cars could cut U.S. auto sales by up to 25,841 vehicles

per year and raise prices.

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 said the regulation "could have noticeable effects on

vehicle prices" and estimated between 1,680 and 25,841 fewer

vehicles would be sold annually because of the rule.

The department also estimated the rule could impact $1.5

billion to $2.3 billion in vehicle inputs from Chinese or

Russian companies for vehicles sold in the United States.