US Dealmaking Slides in 2025 Amid Tariff Retaliation
In February 2025, China imposed tariffs on $14 billion of U.S. goods, fueling a sharp 30% drop in M&A activity as businesses react to rising trade tensions and economic uncertainty.
Published on March 31, 2025
In February 2025, China retaliated against U.S. tariffs by imposing duties between 10% and 15% on approximately $14 billion in U.S. goods, including energy exports and farm equipment. This measured response, reported by the Financial Times on February 28, underscores a deepening trade tension that adds to the prevailing economic uncertainty.
The downturn in U.S. dealmaking was starkly highlighted in January 2025 when the number of M&A transactions fell below 900—marking a 30% decline from the previous year. Executives attributed the slowdown to a cautious business environment under President Trump, a sentiment echoed in multiple reports that cite shifting policies and political uncertainty as key factors delaying major sector deals.