Tariffs and Mergers

Briefs

The impact of mergers and acquisitions is a significant consideration in a trade war. Specifically, when tariffs are increased, the motivations for firms to merge may change. It is reasonable to anticipate that firms in countries facing tariffs may experience a decline in business, prompting them to merge for survival. Conversely, firms in countries benefiting from tariffs may see increased demand, creating uncertainty regarding their incentives to merge.