M&A Outlook In A Year Of Tariffs, Tech And Shifting Rules

Evolving regulatory and political pressures on global M&A activity in 2025

In the last quarter of 2024, the mergers and acquisitions landscape appeared poised for robust recovery, buoyed by a surge in CEO confidence reaching unprecedented levels. Optimism was driven by favourable economic indicators, more realistic and welcoming regulatory environments, and increased corporate liquidity. This momentum faltered in early 2025. January and February were marked by a notable deceleration in deal activity, coinciding with shifts in the political and regulatory landscape.

The introduction of worldwide tariffs on Liberation Day in March 2025 further impacted the M&A environment, precipitating a sharp decline in CEO confidence and reflecting concerns about the economic repercussions of these trade measures. Market participants grew wary of potential regulatory hurdles and the unpredictable trajectory of economic policies linked to the tariffs, dampening enthusiasm for