Tariff Turmoil Hits M&A: Klarna, Chime, StubHub, eToro Delay IPOs

The recently announced tariffs by U.S. President Donald Trump are causing significant disruptions in the global M&A and IPO markets. New tariffs, ranging between 10% and 50%, along with China’s retaliatory measures, have heightened fears of a recession and significantly impacted investor confidence. Prominent companies, including Swedish fintech Klarna and San Francisco’s Chime, have postponed their IPOs. In addition, an unidentified London-based private equity firm pulled out of a European tech acquisition due to market instability. Israeli financial services company eToro and StubHub have also delayed their IPO plans due to adverse market conditions. With increasing costs of debt and valuation uncertainties, economic growth could further slow if these conditions persist. JP Morgan has increased the likelihood of a recession by the year's end to 60%. The anxiety over tariffs and trade wars has contributed to a 13% decline in U.S. mergers and acquisitions in Q1, as stated by Rebecca Dealogic. The trade tensions have also led to a downturn in global markets, with indices like the S&P 500 experiencing their worst losses since 2020.