To Avoid Tariffs, Metals Businesses Looking to Set Up Shop in U.S.
10/25/2018 - The Trump administration’s Section 232 tariffs on steel and aluminum is prompting some overseas companies to begin kicking around for acquisition targets as a way to avoid the tax, according to professional services firm PwC.
“The ongoing U.S. steel and aluminum tariff issues have led foreign businesses to begin targeting inbound mergers and acquisitions in the U.S. in order to set up direct operations,” the firm wrote in its third-quarter outlook on M&A activity in the global metals industry.
“Despite headwinds caused by global trade tension and increasing interest rates, cash-rich corporations with strategic rationales are likely to drive deal activity for the rest of 2018 and into 2019,” said Brian Kelly, PwC U.S. metals deals leader.
