Trump Tariffs Could Lead to More M&A, CFIUS Activity, Lawyer Says

International Trade attorneys Antonia Tzinova and Robert Friedman were quoted in a International Trade Today article discussing the expectations for the Committee on Foreign Investment in the U.S. (CFIUS) under a second Trump Administration. They anticipate that the overall approach of CFIUS, particularly its scrutiny towards investments from China, will remain steady despite potential changes in the investment climate due to new tariffs and easing export restrictions among U.S. allies. Ms. Tzinova said that no significant shift is expected in terms of the key considerations influencing U.S. investment policy in recent years. She also mentioned possible expansions of CFIUS' remit, including jurisdiction over new business ventures by foreign entities in the U.S., while Mr. Friedman highlighted the impact of export control reforms on the number of CFIUS filings, suggesting that adjustments in trade policy could influence foreign investment strategies and the frequency of review processes.

"Even though we're going to have a change in administration, we do not expect a dramatic veering off from that key consideration that's been shaping up investment policy in the U.S. in the last years," Ms. Tzinova said.

"That has a direct impact with regard to CFIUS, because it removes from the category of mandatory filings a noticeable number of transactions that prior to those reforms would have made a filing compulsory under the regulations," Mr. Friedman said. "There's now, in many cases, a voluntary filing choice that companies can make, where before they did not have that option."

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