The recent implementation of a 25% tariff on imported vehicles and certain auto parts by the Trump administration has significant implications for car buyers in the United States. Understanding how these Cadillac tariffs affect our vehicle lineup can help you make informed purchasing decisions.​

Understanding the Cadillac Tariffs

As of April 3, 2025, a 25% tariff has been imposed on imported vehicles and specific auto parts. This means that vehicles manufactured outside the U.S. or those containing a substantial percentage of foreign-made parts may experience price increases. The goal of these tariffs is to encourage domestic manufacturing; however, they also lead to higher costs for vehicles that don’t meet the new criteria.​

Tariff Impact on Cadillac Vehicles

Cadillac offers a range of luxury vehicles, some of which are produced in the U.S., while others are imported. Here’s a breakdown of popular models and how the Cadillac tariffs might affect them:

• Cadillac CT4 and CT5: Manufactured at the Lansing Grand River Assembly plant in Michigan, Cadillac CT4 and Cadillac CT5 benefit from domestic production, making them less susceptible to tariff-related price increases.​

• Cadillac XT4: Produced in Kansas City, Kansas, the Cadillac XT4’s domestic assembly helps shield it from the tariffs, maintaining its competitive pricing.​

• Cadillac XT5 and XT6: Assembled in Spring Hill, Tennessee, the Cadillac XT5 and Cadillac XT6 are built domestically, reducing their exposure to tariffs and helping to keep prices stable.​

• Cadillac Escalade: Manufactured in Arlington, Texas, the Cadillac Escalade’s domestic production means it is not directly impacted by the Cadillac tariffs, preserving its pricing structure.​

What Cadillac Tariffs Means for You and Your Vehicle

When considering a Cadillac vehicle, it’s essential to be aware of where it’s manufactured and the origin of its components. Models produced in the U.S. with a high percentage of domestic parts are less likely to be affected by the tariffs, making them more cost-effective choices. Conversely, vehicles manufactured outside the U.S. or those with significant foreign parts content may experience price increases due to the 25% tariff.​

At Zeigler Cadillac of Lincolnwood, we’re committed to helping you navigate these changes. Our knowledgeable staff can provide detailed information about each model’s production and parts sourcing, ensuring you make an informed decision that aligns with your budget and preferences.

As tariffs reshape the auto market in 2025, it’s important to understand how your vehicle choice impacts both your finances and the broader economy. Fortunately, Cadillac produces several models—like the Cadillac CT4, CT5, XT4, XT5, XT6, and Escalade—right here in the United States. These vehicles are built by American workers in Michigan, Kansas, Tennessee, and Texas, helping shield them from the Cadillac tariffs tied to imported vehicles and parts.​

When you choose a U.S.-made Cadillac, you’re not just getting a great vehicle at a more stable price—you’re also supporting American jobs and manufacturing. At Zeigler Cadillac of Lincolnwood, we’re proud to offer vehicles that combine global innovation with American craftsmanship. Visit us to explore our full lineup and find a Cadillac you’ll be proud to drive.