Klarna and StubHub Postpone IPOs as Trump Tariffs Roil Financial Markets

Klarna and StubHub have shelved their eagerly awaited initial public offerings due to market chaos sparked by President Trump’s sweeping tariff announcements this week. The Swedish buy-now-pay-later firm and the online ticket marketplace had filed IPO plans just weeks ago, only to face a Wall Street now gripped by uncertainty.

Trump’s executive order imposing a 10% tariff on most imports sent stocks plummeting Thursday. The Dow fell 1,679 points, its worst day since 2020, as trade war fears escalated rapidly.

Klarna, set to trade as KLAR on the NYSE, aimed to capitalize on its $6 billion valuation. Sources say the company has no timeline for resuming its IPO amid the ongoing turmoil.

StubHub, slated for an NYSE debut under STUB, was days from its roadshow launch. The firm, backed by Goldman Sachs, also paused plans, citing unpredictable market conditions.

The Nasdaq has slid into bear market territory, down over 20% from its December peak. Tech and retail stocks, key to both companies’ prospects, have been hammered hardest.

Trump’s tariffs, including higher duties on China, threaten to raise costs for consumers and firms. Klarna warned in its prospectus that such policies could dent its merchant base’s health.

StubHub’s business, tied to live events, faces risks from reduced consumer spending power. Analysts say discretionary sectors are especially vulnerable in this climate.

Venture capital firms, counting on these IPOs for big exits, now face delays. The market’s nosedive has dashed hopes of a robust 2025 debut season for startups.

Some experts see this as a temporary setback, with markets potentially stabilizing later. Others warn that prolonged trade conflicts could keep IPOs on ice indefinitely.

Both companies remain tight-lipped on next steps, leaving investors in limbo. Their filings hinted at tariff risks, but few expected such swift disruption.

Trump has doubled down, calling the tariffs a path to American prosperity. Wall Street, however, is reeling, with no clear end to the volatility in sight.

The broader economy hangs in the balance as businesses brace for higher costs. For Klarna and StubHub, the wait for calmer waters could stretch well into the year.