Record drop in deals in 20 years — Trump is slowing mergers
In April 2025, the number of global mergers and acquisitions (M&A) deals fell to its lowest level in two decades, with only 2,330 transactions, the worst since February 2005. This decline, caused by the trade war launched by US President Donald Trump, has created unprecedented uncertainty in the markets, forcing companies and investors to put strategic decisions on hold.
According to Reuters, citing data from Dealogic, bankers and CEOs are slowing down M&A deals after Trump launched a global trade war.
On April 2, the US president announced sweeping new tariffs on goods from China, the EU, and Mexico, destabilizing financial markets. As a result, the value of M&A deals fell to USD 243 billion, 54% less than in March and 20% below the average level of the last two decades.
The situation is even worse in the US, where the number of deals fell to 555, the lowest level since May 2009, when the world was recovering from the financial crisis. Even in the pandemic year of 2020, the numbers were higher.
"Bankers and CEOs hit the brakes on mergers and acquisitions after US President Donald Trump launched a global trade war on April 2, with fewer deals getting signed than during the bleakest days of the COVID-19 pandemic and the 2008-2009 global financial crisis," Reuters reports.
Forced pause — the market is frozen
The uncertainty has led to a massive revision of plans. Some companies, such as Chime and StubHub, canceled their planned IPOs. Others have suspended merger talks.
Bankers are now advising their clients to "take a break" and wait for clarity on US foreign policy. The market is cautious: even potentially profitable deals are being postponed indefinitely.
Technology is holding up — for now
Despite the overall decline, the technology sector remains the most active. It will account for about 40% of the $600 billion in US M&A in 2025.
"Tech deals remain lucrative amid tariff uncertainty," reports Reuters.
Large technology companies such as Apple and Microsoft continue to use their cash reserves to invest in strategic acquisitions.
But even among tech companies, the situation is uneven. According to Kevin Cox, global head of M&A at Citi, companies in the industrial and healthcare sectors, as well as those that rely on global supply chains, have been hit the hardest.
"Telecom, media, services, oil, and gas and utilities are sectors less affected by the tariffs, while some areas of industrials," Cox adds.
While there are still some landmark deals, such as the $24.25 billion acquisition of Global Payments, they tend to be exceptions to the general trend. There are very few such deals, and their volume is not enough to change the overall dynamic — the market is cooling rapidly.
Outlook and Forecasts
A decline in M&A in 2025 could have long-term consequences for the global economy. If Trump's tariffs remain in place, companies will continue to postpone deals, which could lead to reduced investment and slower innovation. At the same time, the resilience of the technology sector and some large deals offer hope for a partial recovery.
Experts recommend that companies adapt to the new realities by reviewing supply chains and focusing on markets that are less dependent on international trade.
"Companies need to be flexible and ready for any scenario," says Cox.
Until US policy becomes more predictable, the global M&A market will remain in limbo.
As a reminder, the President of the United States, Donald Trump, signed the order according to which the country would create a strategic Bitcoin reserve.
We also wrote about the impact of Trump on cryptocurrency.