Klarna, StubHub Delay IPOs as Trump’s Tariffs Roil Markets

New York, April 4, 2025 – Swedish fintech giant Klarna and U.S. ticketing platform StubHub have postponed their highly anticipated initial public offerings (IPOs), citing market turbulence unleashed by President Donald Trump’s escalating tariff regime. The decisions, reported by The Wall Street Journal on Friday, come as Trump’s April 2 “Liberation Day” tariffs—a 10% baseline on all imports, with punitive rates like 54% on China, 25% on Canada and Mexico, and 20% on the EU—triggered a $2.4 trillion Wall Street sell-off and fears of a global trade war, derailing what bankers had hoped would be a blockbuster spring for IPOs.

A Market in Freefall

Klarna, a buy-now-pay-later pioneer, had planned to kick off its IPO roadshow Monday, aiming to raise over $1 billion at a $15 billion valuation on the NYSE, buoyed by a 24% revenue surge to $2.9 billion in 2024, per its March 14 SEC filing. StubHub, eyeing a $16.5 billion valuation after scrapping a 2024 debut, had similarly geared up for a spring listing. But Trump’s tariff bombshell—compounded by China’s 34% counter-duties set for April 10—sent the S&P 500 plunging 4.8% Thursday, its worst day since June 2020, and the Nasdaq down 6%, spooking investors and freezing deal pipelines.

“Klarna’s pausing its IPO after Trump’s tariff turmoil,” a source familiar with the matter told Reuters, noting the company shelved plans as the Nasdaq teetered on bear market confirmation. StubHub, meanwhile, canceled its roadshow, with advisers citing insufficient time to pitch investors amid the chaos, per WSJ. Posts on X captured the mood: “Klarna and StubHub pulling IPOs—Trump’s tariffs are a market wrecking ball,” one user wrote.

Tariffs Upend IPO Hopes

The pullback caps a brutal week for Wall Street’s dealmakers. Bankers had pegged 2025 as a banner year for IPOs, with 52 U.S. listings raising $30 billion by April 1—a 62.5% jump from 2024—per Renaissance Capital. Klarna’s debut, alongside StubHub’s, was seen as a bellwether for fintech and e-commerce resilience. Now, both join a growing list of casualties: AI-chip maker Cerebras and car-rental startup Turo also axed plans this week, per American Banker, as tariff-driven volatility—up 6+ distinct levies across nations—slashes confidence.

Analysts point to cascading risks. Klarna, with 93 million users across 26 countries, faces supply chain disruptions and higher costs that could dent its razor-thin $21 million 2024 profit. StubHub, reliant on a global event economy, fears tariff hikes on tech imports could spike operational expenses. “The IPO window’s slamming shut,” Adrian Mendoza of Mendoza Ventures told American Banker. “Tariff uncertainty’s killing retail investor appetite—recession fears are back.”

A Broader Chill

The tariff fallout extends beyond these two. Affirm, Klarna’s U.S. rival, saw shares crater 15% Thursday, dragging its valuation below $12 billion—under Klarna’s IPO target. CoreWeave, an Nvidia-backed AI firm, raised $1.5 billion in its March IPO but has since shed 9%, per WTOP. “Markets need certainty to price equity,” JPMorgan’s Keith Canton told Reuters. “Tariffs throw that out the window.” Goldman Sachs now sees a 35% recession odds, up from 15%, with GDP growth cut to 1.5%.

Trump, unbowed, told reporters on Air Force One Thursday he’s open to tariff talks “if they offer something phenomenal,” but top aide Peter Navarro insisted on CNBC it’s “not a negotiation—it’s a national emergency.” As allies like Canada (pausing counter-tariffs until April 2) and adversaries like China dig in, the Fed’s hinted at four 2025 rate cuts—traders’ bets per CME FedWatch—may not stem the bleeding.

What’s Next?

Klarna and StubHub haven’t set new IPO timelines, with both in “wait-and-see” mode, per sources. Klarna’s CEO Sebastian Siemiatkowski, who’d eyed a Dutch auction-style debut, told Bloomberg last May “everything’s possible” for timing—now, that flexibility’s tested. For StubHub, a lean operation with no inventory, the delay risks missing a peak concert season boost. As markets brace for next week’s CPI data and Fed signals, Trump’s tariff gamble has turned 2025’s IPO optimism into a cautionary tale—one where even high-fliers like Klarna and StubHub can’t escape the turbulence.