Global mergers and acquisitions (M&A) activity has plummeted to a 20-year low following the implementation of U.S. President Donald Trump's "Liberation Day" tariffs on April 2, 2025. The sweeping trade measures, which impose a baseline 10% tariff on all imports and higher rates on specific countries, have introduced significant uncertainty into global markets, leading to a sharp decline in corporate deal-making.

In April 2025, only 555 M&A contracts were signed in the United States, marking the lowest monthly total since May 2009. Globally, deal values fell to $243 billion, a 54% decrease from March and 20% below the historical monthly average. This downturn is attributed to the market volatility and policy uncertainty stemming from the new tariffs, prompting financial advisors to recommend delaying deals and initial public offerings (IPOs).

The "Liberation Day" tariffs represent a significant shift in U.S. trade policy, introducing a universal 10% tariff on all imports, with elevated rates targeting nations perceived to engage in unfair trade practices. The administration asserts that these measures aim to bolster domestic manufacturing and address trade imbalances. However, the abrupt implementation has led to widespread uncertainty among international trade partners and markets.

The impact of the tariffs has been felt unevenly across sectors. Manufacturing and export-dependent firms face heightened risks due to increased costs and disrupted supply chains. Conversely, technology deals have remained relatively robust, attributed to their reliance on intangible assets less affected by tariffs. Analysts note that manufacturers and export-reliant firms face the most risk, and the environment now demands greater caution in deal-making.

European and UK companies have reported significant challenges due to the U.S. trade war. Major corporations such as Nestlé, Mercedes-Benz, and Unilever report that this escalation has led to decreased consumer confidence, disrupted supply chains, and heightened economic uncertainty. The unpredictability of U.S. trade policies has made long-term planning difficult, leading some companies to withdraw financial forecasts.

At the 2025 Milken Institute Global Conference, executives expressed cautious optimism despite concerns over the U.S. economy's trajectory. KKR co-founder George Roberts addressed investor concerns during the conference, urging calm amid market volatility triggered by U.S. President Donald Trump's trade policies. Roberts referenced Queen Elizabeth's famous phrase, "stay calm and carry on," emphasizing a long-term perspective despite disruptions in international trade and the imposition of tariffs.

The current decline in M&A activity is reminiscent of the downturn during the 2008-2009 financial crisis. However, the present situation is uniquely influenced by deliberate policy decisions rather than systemic financial failures. The full extent of the "Liberation Day" tariffs' impact will unfold as businesses and investors adapt to the evolving trade landscape.

In summary, the "Liberation Day" tariffs have introduced significant uncertainty into global markets, leading to a marked decline in M&A activity and posing challenges for companies worldwide. The full extent of these policies' impact will unfold as businesses and investors adapt to the evolving trade landscape.