IVCA Feature: Online Analysis on How Tariffs, DOGE will Affect VC/PE & Economy
March 5, 2025
The two issues that have emerged in the newly minted second term of Donald Trump has undoubtably been tariffs (on product from other countries) and the somewhat secretive Department of Government Efficiency (DOGE). But what will be the implications of these two programs on Venture Capital and Private Equity, and in turn the overall economy? The online financial press weighs in.
TheLogic.co, ’VCs Warn That the Threat of Tariffs is Changing the Investing Game’
The View from Canada: “A trade war between the U.S. and Canada might be on hold, for now, but the continued threat could have lasting impacts on the startup and investment sector, venture capitalists have warned. Toward the end of last year, many investors in Canada were anticipating the VC market to improve in 2025, after years of shaky economic conditions had dampened deal-making.”
READ MORE: https://thelogic.co/news/canada-tariffs-venture-capital-investment/
Axios.com, ’Silicon Valley is coming to Washington D.C.’
The big picture … Silicon Valley is about to influence D.C. like Wall Street once did. Any future finger pointing will be at a mirror. Zoom in … President Trump has named a slew of VCs and tech execs to his administration, particularly in policy areas that could impact investment returns.
READ MORE: https://www.axios.com/2025/01/03/silicon-valley-washington-dc-venture-capital
ChannelChek.com, ’How Trump’s DOGE Initiative Could Reshape Biotech’s Future’
From Shortly After the Election: “The Department of Government Efficiency (DOGE), spearheaded by Donald Trump with the involvement of Elon Musk promises sweeping changes to federal operations, including deregulation efforts targeting agencies like the FDA. For the biotech industry, these potential reforms could significantly impact drug development, approval processes, and market dynamics.”
READ MORE: https://www.channelchek.com/news-channel/how-trumps-doge-initiative-could-reshape-biotechs-future
Bloomberg.com, ’DOGE Claim of $55 Billion in Savings Doesn’t Quite Add Up’
The effort to slash federal spending championed by billionaire Trump ally Elon Musk and dubbed the Department of Government Efficiency says it has saved $55 billion so far. But the numbers posted on the DOGE website as of yesterday only accounted for $16.6 billion.
PODCAST, NB.com, ’Tariffs Are Here: What Does That Mean for Private Equity?’
Opinion from the firm of Neuberger/Berman: “While policy negotiations remain fluid, we believe private equity (PE) portfolios may offer some welcome insulation from tougher tariffs: This is because PE managers have historically had less exposure to economic sectors that rely heavily on tangible imports—such as industrials, materials and consumer goods—and greater exposure to sectors and industries where innovation and intellectual capital are the primary drivers of value, such as information technology (IT), healthcare and financial services.”
LISTEN (15 minutes): https://www.nb.com/en/global/insights/article-tariffs-are-here-what-does-that-mean-for-private-equity
PODCAST, AllspringGlobal.com, ’Tariff Talk: Politics and Global Trade’
The U.S. announced tariffs on Canada, Mexico, and China. Although tariffs on NAFTA countries are temporarily on hold, China is responding with its own retaliatory measures. Allspring experts discuss how these ongoing developments create uncertainty but also opportunities for active portfolio management.
LISTEN (19 minutes): https://www.allspringglobal.com/insights/videos/tariff-talk-politics-and-global-trade/
PODCAST, HKLaw.com, ’Adapting to Tariffs and Other Trade Policy Shifts Under the Trump Administration’
The episode highlights the complexities of tariff implementation, legal avenues for imposing tariffs under Sections 301 and 232 of the U.S. Trade Act of 1974, and the potential for flexibility under the International Emergency Economic Powers Act (IEEPA).
LISTEN (42 minutes): https://www.hklaw.com/en/insights/media-entities/2025/02/podcast-adapting-to-tariffs-and-other-trade-policy-shifts