U.S. tariffs could slow M&A activity in first half of 2025: KPMG report

Signage at the KPMG offices in Ottawa, Friday, June 28, 2024. THE CANADIAN PRESS/Sean Kilpatrick

TORONTO — A new report says tariffs proposed by the United States on Canadian goods could cause merger and acquisition activity to slow in the first six months of the year.

However, the report by KPMG in Canada says structural changes in trade could spur cross-border deals in the long-term.

U.S. President Donald Trump has suggested he could impose 25 per cent tariffs on goods headed to the U.S. from Canada and Mexico on Feb. 1.

The comments came after Trump held off on imposing tariffs on his first day in office, instead opting to order a study.

Marco Tomassetti, president of KPMG Corporate Finance, says a positive backdrop for deals is being clouded by the potential tariffs and the resulting uncertainty.

Tomassetti says the lack of clarity results in downward pressure on valuations and increases the likelihood of a failed deal.

This report by The Canadian Press was first published Jan. 22, 2025.