When Donald Trump won the presidential election, many on Wall Street and in the business world cheered.

His promises of a pro-business, pro-growth administration had executives and investors feeling optimistic about the future.

Fast forward a few weeks into his presidency, and that excitement is starting to wear off.

Uncertainty Replaces Confidence

Recent policy reversals, particularly on tariffs, have left many business leaders confused and concerned.

The stock market initially soared on what was dubbed the “Trump rally,” but that enthusiasm is now giving way to a more cautious approach.

Words like “fragility” and “volatility” are becoming common in boardroom discussions, as executives try to navigate an unpredictable economic landscape.

Nick Pinchuk, CEO of tool company Snap-on, summed up the sentiment with an unusual analogy.

“It’s like being on Space Mountain at Disney World,” he said.

“You get on the ride, you don’t know where you’re going, there are abrupt turns left and right, but you hope you’ll get to the right place at the end.”

Tariff U-Turns Shake Business Leaders

One of the biggest sources of concern has been Trump’s abrupt changes on trade policy.

Last week, he announced a 25 percent tariff on imports from Mexico and Canada, only to delay the decision days later.

This back-and-forth has left businesses scrambling to plan for potential supply chain disruptions and price increases.

Instead of focusing on mergers and acquisitions, executives now find themselves trying to assess whether tariffs will go into effect and how to adjust their operations accordingly.

A top investment banker told The Wall Street Journal that many companies are putting deal-making on the back burner as they figure out how to respond to shifting trade policies.

A Slow Start for Business Deals

The uncertainty is already having a tangible impact on corporate activity.

January saw fewer than 900 deals announced in the U.S., a sharp drop from the 1,200 deals made in the same month last year and the 1,500 seen in 2023.

This marks the slowest January for deals in a decade, according to data from LSEG.

While some executives are pressing forward, others are adopting a “wait and see” approach.

David Galullo, CEO of San Francisco-based design firm Rapt Studio, admitted that while he didn’t vote for Trump, he had hoped for a steady start to his presidency.

Instead, he’s struggling to reassure his employees. “I don’t know what to say,” he admitted.

Some Optimism Remains

Despite the turbulence, not everyone is feeling discouraged.

Some CEOs remain eager to strike deals, even if their counterparts are hesitant.

In fact, six hostile or unsolicited deals were announced in January—the highest number seen in a single month since 2018.

Jim Langston, a mergers and acquisitions expert at law firm Paul, Weiss, Rifkind, Wharton & Garrison, believes that while the start of the year has been rocky, the real wave of deals could still be coming.

“The much-anticipated M&A tsunami of 2025 has yet to make landfall,” he said, “but the conditions are still ripe for that to arrive later this year.”

Historically, business activity tends to pick up in the second quarter following a presidential inauguration.

Whether that trend will hold true this time around remains to be seen, but for now, the business world is watching and waiting.

This article was published on TDPel Media. Thanks for reading!

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