Trump imposed tariffs on the world using the International Economic Emergency Powers Act (IEEPA) on April 2. Critics said it was too much, too soon, and Trump agreed to a 90-day pause to try and get concessions on trade from major countries first. Despite a handful of deals happening over the summer, the rest of the world was finally hit with IEPPA tariffs in August, leading to a slowdown in imports.

The U.S. goods and services deficit came in at $59.6 billion in August, down $18.6 billion from the revised $78.2 billion in July, the Bureau of Economic Analysis said on Wednesday.

For cars, tariffs are shifting production to the U.S. GM had said it would reduce production of certain models and car parts in Canada and Mexico in favor of making them in the U.S., even though those products would be permitted duty-free access if they met USMCA content requirements. Unlike Mexico, Canada imposed retaliatory tariffs which did not work to their advantage.

Only Mexican and Canada sourced vehicles and automotive parts that fail to meet content requirements are subject to Section 232 tariffs of 25%. The percentage of products that are not meeting those requirements is unknown, though some have put it at around 5%. GM shifting production to the U.S. might suggest that number is higher. It could also reveal that GM is considering the longer term risks associated with USMCA’s renewal next year.

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