By Mark Williams
Trump’s tariffs are shaking up M&A deals worldwide, leaving many dealmakers in limbo. While some take a cautious “wait and see” approach, others are pushing through deals before disruption hits. Mark Williams explores how these tariffs are reshaping global M&A strategies and the challenges and opportunities that lie ahead.
While the US Administration has temporarily paused its recent tariff plans on all countries excluding China, the levies are challenging the concept of open global trade that has shaped the international economy for half a decade.
In turn, this uncertainty is cooling enthusiasm in certain sectors and will likely reshape mergers and acquisitions (M&A) this year, creating both challenges and opportunities across regions and industries.
Dealmakers adjust
This is evident from activity on Datasite, which facilitates around 19,000 new deals annually.
For example, in Canada, which has been navigating tariff announcements since January, the early signs are clear. Cross-border deal flow has slowed, while the proportion of transactions placed on hold has risen by more than seven percentage points year over year in the first quarter. Much of this stems from the uncertainty of whether the tariffs will be in place over the long term. For now, many investors are choosing to wait rather than walk away, leaving deals in a holding pattern until there is greater clarity.
This ‘wait and see’ approach is similar to the behaviour on display in the lead-up to the 2024 US election, where dealmakers extended transaction timelines. Yet not everyone is waiting. Some buyers have opted to push transactions through quickly, compressing diligence timelines to close ahead of any potential disruption. This is more the exception than the rule.
Across Latin America, dealmakers have responded differently. For sectors that have historically been targeted by US tariffs, such as metals and manufacturing, there is understandable caution. Still, there is growing interest from global investors who view the region as a strategic alternative for supply chain diversification. Nearshoring is also gathering pace and increased deal activity in infrastructure and logistics reflects a broader shift in thinking. The region has the potential to redefine its role as an import/export hub should countries look outside of the US for alternative destinations.
Within the United States, trends are diverging. The number of 2025 US deal kick-offs, especially of asset sales or mergers, rose 8% year-over-year in in the first quarter boosted by new TMT, consumer, and healthcare deals and by firms pivoting back to domestic bolt-ons, reassessing international expansion, and taking a harder look at supply chain exposure. At the same time, however, first quarter deal hold times are rising, up 3% year-over-year in the Americas. Tariff risk is starting to show up in valuation models, particularly in sectors where cost pass-through is limited.
Widening the aperture, global M&A activity increased in the first three months of 2025. Global deal starts rose by 12% year over year in the first quarter, creating strong momentum.
Significant activity has come from EMEA and APAC, powered by renewed momentum in healthcare, consumer goods, and energy. These regions are benefiting from structural tailwinds and shifting investor sentiment, particularly as capital begins to rotate back into growth-oriented sectors. In some cases, it isn’t entirely fresh demand. A portion of the new deal activity reflects transactions that were paused in 2024 and are now being reactivated. That does make the outlook slightly softer around the edges, but the direction of travel is still positive.
If the opening months of Trump’s second term are any indication of the policies to come, M&A is set for a volatile period. However, there are still opportunities. For now, M&A professionals and those considering transactions, must balance long-term opportunity with short-term resilience, while closely monitoring political announcements and economic reactions.
About the Author
Mark Williams is Global Chief Revenue Officer at Datasite Enterprise, leading global go-to-market strategy for its flagship SaaS solution. With extensive SaaS leadership experience at Intralinks, SmartFocus, and Kno, he has overseen sales teams across the Americas. Mark holds a BSc in Mechanical Engineering from Humberside University.
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