Global mergers and acquisitions (M&A) activity fell to its lowest level in two decades in April, as mounting uncertainty over U.S. trade policy prompted executives and bankers to hit pause on deals.
A Reuters report highlighted data from Dealogic that indicated the number of M&A contracts signed worldwide dropped to a level not seen since February 2005 — a sharper slowdown than during the depths of the COVID-19 pandemic or the 2008 financial crisis.
The US, the world’s largest M&A market, saw just 555 deals completed in April, marking the lowest monthly total since May 2009.
The steep decline followed President Donald Trump’s April 2 announcement of sweeping tariffs on US imports, which triggered market volatility and forced some companies, including Chime and StubHub, to shelve planned IPOs.
Although a handful of large deals provided some support — including Global Payments’ $24.25 billion acquisition of a card services firm — overall deal value fell sharply. Total global M&A activity in April was $243 billion, representing a 54% drop from March and sitting 20% below the 20-year monthly average.
The trade war has had an uneven effect across sectors. Industries with limited exposure to international trade, such as telecom, utilities, and energy, have experienced less disruption. In contrast, manufacturers and companies reliant on cross-border supply chains have faced heightened risks, prompting a more cautious approach to acquisitions.
Technology remained a relative bright spot. Deals in the sector, often focused on intangible assets like software and intellectual property rather than physical goods, accounted for nearly 40% of the nearly $600 billion in M&A transactions recorded in the US so far this year.