President Donald Trump has instructed U.S. automakers not to raise car prices in response to tariffs for cars not made in the United States that are set to take effect next week, a White House official told NewsNation.

Automakers are free to decide whether to follow the president’s guidance, the official said.

Trump announced earlier this week that his administration would impose a 25% tariff on cars not made in the United States. The White House said these tariffs will produce more than $100 billion in new annual tariff revenue. These tariffs will be in addition to any current tariffs.

“What (Trump is) doing is acknowledging that there are costs to bear,” the official told NewsNation. “The company should be able to eat the cost and not pass it down to the American people.”

The new auto tariff will start on April 2, and Trump told reporters this week that the U.S. would begin collecting on the tariffs a day later.

“This will continue to spur growth,” Trump said this week, adding that if manufacturers’ cars were built in the U.S., they would not be subject to the new tariff. Trump said that the auto tariffs will be permanent.

>https://www.newsnationnow.com/politics/trump-automakers-tariffs-dont-raise-prices/