Risk Management
KPMG Survey: 57% of US CFOs Say Tariffs Have Eroded Gross Margins and Overseas Sales
KPMG conducted a survey of approximately 300 US CFOs and executives from May to June, and the results show that 57% of respondents say tariffs have squeezed gross margins, with about one-quarter reporting margin declines exceeding the 6%-10% range. Meanwhile, about one-third of respondents say retaliatory tariffs have led to an overall 16%-25% decline in overseas sales, with companies in China particularly affected, as about 83% of firms report sales declines.
US to Impose 30% Tariffs on EU and Mexico, Effective August 1
The US plans to implement 30% tariffs on imports from the EU and Mexico starting August 1. Trump published the relevant letter on Truth Social and threatened to raise rates if they retaliate. Mexico has established a working group with the US to seek alternatives, while the EU has expressed willingness to negotiate but reserves the right to countermeasures.
The United States' "One Big Beautiful Bill" Takes Effect, Boosting M&A Deal Prospects
The recently enacted "One Big Beautiful Bill" in the U.S. is seen by analysts as a positive factor for M&A deals. The act extends multiple provisions of the 2017 Tax Cuts and Jobs Act, permanently reinstates 100% bonus depreciation for qualified assets, and relaxes restrictions on corporate interest deductions. Professionals from firms such as PwC and EY believe that tax certainty is expected to drive deal activity, particularly in the energy, financial, and manufacturing sectors, but uncertainties such as tariff negotiations and geopolitical issues remain.
Under Trump's Economic Policies, CFO Risk Appetite Declines Significantly
A report released by Deloitte on Tuesday showed that CFO confidence fell sharply in the second quarter due to economic headwinds and geopolitical uncertainty. About 33% of CFOs surveyed believed it was a good time to take on more risk, down from 60% in the first quarter and the lowest level since the third quarter of last year.
2025 M&A Outlook: Opportunities and Challenges under Tariff Policies
In early Q2 2025, the United States implemented or proposed new tariffs, impacting the M&A market. Deloitte expert Adam Reilly believes that despite uncertainty causing some dealmakers to wait on the sidelines, leaders are proactively leveraging volatility. The article proposes three major strategies: cross-border expansion, exploring non-traditional financing, and embedding technology into deal processes, emphasizing that value realization is the greatest opportunity at present.
Trump announces reciprocal tariff rates on Japan, South Korea, and other countries
As the 90-day suspension period is about to end, US President Trump has begun to announce tariff rates on imports from specific countries, with the new rates taking effect on August 1, some differing from those previously announced.
PwC: M&A recovery paused under Trump policy fog
PwC's latest report indicates that despite high hopes for an M&A recovery early in Trump's second term, U.S. M&A activity grew only slightly in the first half of the year, with trade policy uncertainty prompting companies to pause or reassess deals. The report advises strategic buyers to increase the frequency of scenario planning, and CFOs to manage liquidity cautiously.
US initial jobless claims rise to highest since 2021, signaling cooling labor market
According to US Labor Department data, continuing jobless claims increased by 37,000 to 1.97 million for the week ending June 14, the highest level since November 2021. Both hiring and layoffs have declined, indicating a cooling labor market. Fed officials are divided on the employment outlook, with some indicating they may support a rate cut at the July meeting if inflation is under control.
Fed holds steady, watching whether tariff-driven inflation persists
Federal Reserve Chair Jerome Powell testified before the Senate Banking Committee that the central bank will keep its benchmark interest rate unchanged to assess whether the impact of tariffs on inflation is short-lived or lasting. He noted that most policymakers still expect room for rate cuts this year, but emphasized the need to proceed cautiously.
Fed Chair Powell Reiterates 'Wait-and-See' Stance, Distancing from Trump's Rate-Cut Demands
In congressional testimony, Fed Chair Powell stated that the central bank is in no hurry to adjust the benchmark interest rate, emphasized the inflationary impact of tariffs, and acknowledged that if inflationary pressures remain under control, a rate cut could come 'sooner rather than later.'