A wave of geopolitical volatility triggered by fresh US tariffs has reverberated across global capital markets, putting a freeze on IPO activity and halting M&A transactions in sectors ranging from fintech to mid-cap tech, according to a report by Reuters.
US President Donald Trump’s announcement of additional tariffs – ranging from 10% to 50% – on Wednesday prompted a sharp sell-off in global equities, with China responding on Friday with retaliatory measures, including export controls and its own set of tariffs. The resulting market volatility has cast a long shadow over dealmaking sentiment.
In the fintech space, Klarna has withdrawn its IPO plans, while San Francisco-based Chime has delayed its own offering, according to sources familiar with the matter. Israeli brokerage eToro has also postponed its investor roadshow, initially scheduled to begin Monday, pushing it back until after 20 April.
Meanwhile, StubHub executives – who had been preparing to launch a long-awaited roadshow next week – opted late Thursday to delay for at least another week, potentially until after Easter, pending market stabilisation.
Private equity has not been immune. A London-based PE firm pulled out of a European mid-cap tech acquisition late Thursday, citing market dislocation following the tariff announcements.
According to Dealogic data compiled for Reuters, US M&A volume was already down 13% in Q1, even before the latest escalation in trade tensions.
Thursday marked the worst trading day for US equities since 2020, with the S&P 500 extending losses into Friday. JP Morgan has since raised its probability of a US recession by year-end from 40% to 60%.
Market participants continue to monitor developments closely, with IPO and acquisition timelines now increasingly at the mercy of policy shifts and macroeconomic uncertainty.
