M&A activity in Asia-Pacific slows down in first quarter due to uncertainty over Trump tariffs

Asia-Pacific M&A transactions experienced a significant decline of 30% during the initial quarter of 2025, primarily due to escalating trade tensions and uncertainty surrounding policies. Despite the overall decrease in mergers and acquisitions across the region, countries like India and Japan stood out as exceptions to this trend.

In the wake of global economic challenges, the Asia-Pacific region has been grappling with geopolitical issues impacting the business landscape. The region’s M&A market felt the brunt of these challenges, with a notable reduction in deal-making activities during the first quarter of the year. The prevailing uncertainties surrounding trade policies and geopolitical tensions have cast a shadow over investor confidence, leading to a slowdown in M&A transactions.

India and Japan emerged as bright spots amidst the subdued M&A environment in the Asia-Pacific region. Both countries displayed resilience in the face of adverse market conditions, standing out for their relative stability and attractiveness to investors. Despite the broader decline in M&A activity, India and Japan continued to draw interest from investors seeking opportunities in the region.

Amidst the challenges posed by trade tensions and policy uncertainties, India maintained its position as a key player in the Asia-Pacific M&A landscape. The country’s diversified economy and growth potential served as attractive propositions for investors looking to capitalize on emerging markets. Japan, on the other hand, showcased its resilience and stability, offering a safe haven for investors amid the prevailing uncertainties in the region.

As the Asia-Pacific region navigates the complex geopolitical and economic landscape, India and Japan have emerged as beacons of stability and growth potential. Their ability to weather the storm of uncertainty and provide a conducive environment for investment has set them apart in the M&A market. Despite the overall decline in M&A activity across the region, India and Japan’s performance highlights their resilience and attractiveness to investors seeking opportunities in a challenging environment.

Looking ahead, the Asia-Pacific M&A landscape remains uncertain, with ongoing geopolitical tensions and policy challenges likely to continue impacting deal-making activities. As investors navigate the evolving market conditions, countries like India and Japan are poised to play a significant role in shaping the future of M&A transactions in the region. Their ability to weather the storm and provide stability amidst uncertainty makes them key players in the Asia-Pacific M&A market.