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In this video tutorial by Trump Excel, the presenter demonstrates how to merge tables in Excel using Power Query. The example involves sales data for July 2018 with columns for date, item, sales rep, quantity, price, and commission. Additionally, there is a separate table with product IDs for each item and regions attached to each sales rep. To create a pivot table accurately, merging these tables is essential as the original table lacks crucial data like product IDs and regions. By combining the tables, users can analyze data more efficiently.