**Deal Hunt in the Global Food Sector Reignites in Wake of Trump’s Tariffs**
*By Thijs Geijer, Senior Sector Economist, Food & Agri*
The global food and beverage industry is witnessing a notable shift as exporters from the European Union reassess their strategies in response to Trump’s tariffs and the impact of a weaker US dollar. With these challenges affecting profitability, many companies see greater advantage in establishing local production facilities within North America. This approach helps to significantly reduce the adverse effects of tariffs and currency fluctuations.
So far this year, mergers and acquisitions (M&A) deals in the food sector have reached an impressive $25 billion, signaling strong momentum with more deals anticipated in the near future. The year 2025 is shaping up to set a record for transatlantic food sector M&A deal values, marking a year of extremes and dynamic activity in the market.
**What’s Driving the Shift?**
The combination of trade tensions stemming from tariff policies and foreign exchange volatility has prompted companies to rethink their market entry and growth strategies, pivoting towards localized production. This tactic not only mitigates tariff-related costs but also enhances supply chain resilience amid global uncertainties such as Brexit and other geopolitical developments.
**Looking Ahead**
As economic and trade landscapes continue to evolve, the food and beverage sector is likely to remain active with strategic deals and partnerships. Companies focusing on agility and local presence are better positioned to navigate the complexities of international trade and currency risks moving forward.
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*Note: This article is for informational purposes only and does not constitute investment, legal, or tax advice. It is not an offer or solicitation to buy or sell any financial instruments.*
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