Deal Drought: Trump's Tariff Tsunami Freezes Global M&A at 20-Year Low

April 2025 marked a historic collapse in global mergers and acquisitions (M&A), plunging to their lowest point in two decades. The catalyst? An unpredictable trade war was unleashed by President Trump’s administration on “Liberation Day,” April 2, sending shockwaves through boardrooms, banks, and balance sheets worldwide.

According to Dealogic, only 555 M&A deals were inked globally in April—a staggering slump that outpaced the declines seen during the COVID-19 pandemic and the 2008 financial crisis. Total deal value plunged to $243 billion, down 54% from March and 20% below the 20-year monthly average.

Tariff Turmoil 
The Trump administration’s whiplash tariff announcements and sudden reversals have fueled a climate of fear and indecision. CEOs, CFOs, and bankers alike are uncertain how to navigate a market where trade policies shift overnight.
“I advise clients to wait,” said Lorenzo Paoletti, managing director at Truist Securities. “Executives haven’t fully grasped how tariffs will impact them. Until they do, it’s safer to hold cash.”
Bankers, typically the engine behind M&A activity, have become risk-averse advisors, urging clients to stay on the sidelines. High-profile negotiations like Chime’s acquisition of StubHub collapsed, while nations slapped retaliatory tariffs, worsening the chaos.

Tech: The Lone Bright Spot
Amid the bleak outlook, the tech sector emerged as a rare beacon of resilience. In April, Global Payments acquired Worldpay for $24.25 billion—one of the few headline deals to close.
The tech industry accounted for 40% of the nearly $600 billion in U.S. M&A activity this year, with intellectual property-driven firms proving more immune to tariff disruptions than traditional sectors reliant on physical goods.

Volatility Impacts Transactions
Experts warn that the road ahead remains treacherous. Kevin Cox, Citi’s global head of M&A, told Reuters that dealmakers are being forced to reevaluate business models, especially in industrials, healthcare, and tech. “Volatility impacts transactions,” Cox said. “Buyers either need to price in the risk or step back until there’s clarity.”

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