This update explores the shifting landscape of transactional lending and business strategies amid economic uncertainty driven by new tariff policies, as revealed to Practical Law Finance in a series of anonymous off-the-record interviews, conducted around the 100-day mark of the new administration, with senior finance attorneys whose collective experience represents an array of middle market and large cap lending work. Although senior finance attorneys initially anticipated a robust year for new money deals, the introduction of tariffs has led to a reevaluation of business strategies and acquisition plans. A flexible approach by business leaders to financing solutions is important in the current environment in which liquidity concerns and the prospect of default rates rising are significant worries. Targeted opportunities exist and some industry sectors look set to fare better than others. The resilience of the US economy offers some reassurance, though business confidence is fragile in uncertain times.
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