Donald Trump’s most recent win has unsurprisingly made waves across the globe.

US markets, which were performing well – albeit tentatively – before the election, experienced strong growth following the results. Scott Bessent’s appointment as Treasury secretary last month further boosted US markets, reflecting American confidence in both Bessent and the broader Trump agenda.

The rest of the world, however, may be growing weary of the US’s somewhat unpredictable policy.

Already, the US seems to be losing favour abroad. The Financial Times reported earlier this week that China has been making strides in Central and South America – long considered the US’s backyard. Some have also suggested that if the US places tariffs on the EU, it could lead to greater interest in strengthening trade ties between Europe and China. While the US pursues more isolationist policies, China continues to expand its global influence.

Furthermore, Asian and European markets have reacted less enthusiastically to the recent news and tariff threats from Trump. While Bessent has been viewed by some as a potential moderating influence to Trumps aggressive trade policy, Trump’s recent tweets suggest he intends to follow through on his campaign promises regarding tariffs. Given his vocal stance, tariffs of some form seem likely, though experts are hesitant to predict the exact scope.

To mitigate the impact of potential tariffs, it is likely that there will be a flurry of cross-border deal-making in the US over the next few months, as international businesses work to establish a more significant presence within US borders. Additionally, possible decreased regulation under the Trump administration could further encourage M&A.

International PE investment from US firms may slow as US investors shift their focus to the domestic market. Investors globally who are invested in technology or renewables may feel the knock-on effects of Trump’s anticipated policy, while those who are focused on favoured “traditional” industries will likely benefit from reduced US regulations and increased tariffs on foreign goods. According to Private Equity International and Bloomberg, many investors are concerned that certain policies may lead to higher inflation, prompting some to hedge their bets by redirecting capital into private credit.

If Trump’s first term is anything to go by, the next four years are likely to continue to keep the US at the forefront of the global business conversation.