Throughout his 2024 presidential campaign, Donald Trump vowed to impose major tariffs on a range of imported goods, with a particular emphasis on goods imported from China. Now, just over two weeks after taking office for his second term, President Trump has implemented an additional 10-percent tariff on all Chinese imports. The move is expected to lead to higher consumer prices, and among the products likely to be affected are the Cadillac CT4 and Cadillac CT5 sedans.
While the U.S.-spec Cadillac CT4 and Cadillac CT5 are assembled domestically at GM’s Lansing Grand River Assembly plant in Michigan, both models rely on a substantial number of Chinese parts. In fact, 15 percent of the components used to build these sedans originate from China. This covers all trim levels, from the standard models up to the high-performance V-Series and Blackwing variants. As a result, the newly imposed 10-percent tariff on Chinese goods could directly impact production costs, leading to a potential price hike for U.S. consumers interested in purchasing either luxury sedan.
Beyond the 15 percent of parts sourced from China, the Cadillac CT4 and Cadillac CT5 also incorporate 37 percent of their parts from the U.S. and Canada, and 21 percent from Mexico. The engines for both sedans are sourced from the United States, while transmissions are produced in either the U.S. or Mexico. These supply chain dependencies mean that even though the final assembly occurs in the U.S., fluctuations in international trade policies – such as a new tariff – could have an impact on the overall pricing and production costs.
| U.S. / Canada | Mexico | South Korea | China | Final Assembly | Engine | Transmission / Drive Unit | |
|---|---|---|---|---|---|---|---|
| 2025 Cadillac CT4 | 37 | 21 | - | 15 | USA | USA | USA |
| 2025 Cadillac CT4-V Blackwing A10 | 37 | 21 | - | 15 | USA | USA | USA |
| 2025 Cadillac CT4-V Blackwing M6 | 37 | 21 | - | 15 | USA | USA | Mexico |
| 2025 Cadillac CT5 / CT5-V | 37 | 21 | - | 15 | USA | USA | USA |
| 2025 Cadillac CT5-V Blackwing A10 | 37 | 21 | - | 15 | USA | USA | USA |
| 2025 Cadillac CT5-V Blackwing M6 | 37 | 21 | - | 15 | USA | USA | Mexico |
China, however, wasn’t the only country in the tariff crosshairs. President Trump also threatened a 25-percent tariff on goods imported from Mexico and Canada, which would have an even bigger impact on the North American auto industry. However, as reported earlier this week, Trump has opted to pause the enforcement of these tariffs for 30 days following discussions with leaders from Mexico and Canada. The delay was granted after both nations agreed to strengthen border security in an effort to curb drug smuggling and illegal immigration.
Comments
Here is a great idea! Don’t buy it if it goes up in price. No one is forcing any of us to pay these ridiculous prices.
CHINA HAS A 40% TARIFF ON US PRODUCTS.
Wow, gm might have to advertise these two sedans less to make up for the added 10% tariff on China. Oh, nevermind! Here’s a novel idea, make more than 37% of content in the United States.
If the 25% tariff on Canada & Mexico goes through, US plants will shut down or consumers will pay huge increases. OR…invoke the 25th Amendment.
That’s because GM is in bed with China get out and start getting parts from China remember your an American company.
So many that don’t fully understand how large-scale production and manufacturing like to put in their two cents.
1. “Just make it in the US.” is a proposition that can make sense if you understand that factories to make the widgets needed, will take not only massive spending to buy land, build the structure, buy the machinery necessary, incorporate infrastructure (utilities, etc.), and insure. Then they have to be manned by personnel that need to be fully trained. That personnel pool will then need to be offered competitive wages and benefits. Mind you, all of this will take time… a lot of time.
2. More often than not, much of the raw materials are also sourced internationally, so even if all of point 1 was addressed, the company would then still have to pay additionally for those materials on top of all the investment in the actual manufacturing. So, then the company would need to price accordingly to make up the cost of the new factories and personnel, on top of the additional cost of raw material procurement.
Manufacturing isn’t the same as it was in the early 1900’s. The world has moved on. The global economy has become something that is out of its box, and it absolutely will not be put back in. Whether we like it or not, whether we approve of it or not, this is how things have panned out. Now we could always spend massive amounts of time and money to try to take it back to “how it used to be” (not going to happen), OR we can make moves to make the systems that are in place now benefit as many as possible as much as possible.
As I’ve said before, this will be the next gouging scam. Automakers will claim an abundance of Chinese parts even if it’s not true. Just to raise prices even higher. If customers are that stupid, then there’s no hope.
Beach, lets not start some conspiracy theories. Companies (especially public) can’t/won’t lie where parts are supplied just to raise prices, that would be caught quickly.
MAKE THE DAMN THING IN AMERICA !!
Mark ,,i agree with you ASSEMBLE AMERICAN BRAND AUTO’S IN AMERICA
Final assembly of the vehicles in question IS in the US. The cost increase in discussion in the article comes from the percentage of components that are used in that final assembly that are sourced from the tariffed countries mentioned.
And pay more due to UAW costs? Pass, I don’t care where my vehicle comes from as long as the price is reasonable. Atleast if it is an American company the profits come here…
It’s time for Mary Buick Envision Made in China-Barra to find another source for those 15% parts made in China. The Buick Envision should have a 100% tariff.
Makes no sense. Import 20 to 30 million illegal aliens, put them on welfare, then import car components and even cars like the Blazer from the same countries those aliens are citizens of.
Scary Mary at it again. Chinamerica cars are soulless.
President Musk has it all figured out.
25% tariffs on Canada and Mexico, but only 10% on China. Why? Because he has lots of Tesla’s that aren’t selling. So if the tariffs are applied, his competition, Ford, GM, and Chrysler would have to move production back the the U.S.A., at a cost that would almost bust them.
However, China is a stand alone market, and guess what, Tesla has manufacturing plants there. So if Tesla is bringing parts to the U.S.A. for current production, Tesla parts would carry a 10% tariff, not the 25% the other manufacturers will. Insider cheater!
Cadillac is doomed with all the EV crap they are making. I guess I bought my last Caddy a 2023 XT5 SPORT
NO ELECTRIC JUNK FOR ME AND MILLIONS OF OTHERS
get rid of Mary before you are broke. You have an EV idiot running the company