Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
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Klarna Delays IPO As Markets React to Trump’s Tariffs
Financing | April 4, 2025
Image: Stock Markets Since Trump's Inauguration (New York Times)
Klarna Delays U.S. IPO Plans After Trump’s Tariffs Break Markets
As Reuters and Wall Street Journal reported, Swedish fintech giant Klarna is now delaying its U.S. IPO plans after President Trump's wide sweeping universal tariffs and country specific tariffs were announced on April 2, just two days prior, triggering heavy market volatility and declining market pressures.
See: Five Ways Countries Are Responding to Trump’s Tariffs
Klarna, known for its "buy now pay later" services (BNPL) was preparing to go public on the New York Stock Exchange under the ticker symbol KLAR but has delayed the launch saying it's due to uncertainty in the market environment. In its filing, the company flagged global trade policies and tariffs as a potential risk that could hurt consumer spending and merchant revenues, both are important for Klarna's business model.
Klarna's filing said:
"A downturn in the general economic environment or a slower pace of economic growth, including as a result of changes in international trade policies... can lead to decreased consumer spending and adversely affect the financial condition of our merchants."
What It Means for Fintech and Investors
Trump's tariffs have no doubt damped investor confidence. Klarna's delay is a setback for the fintech sector and anyone looking for a rebound in IPO activity. Klarna is one of the most high profile fintechs in Europe, and its imminent U.S. IPO listing was closely watched as a measure of investor confidence in the BNPL model.
See: 10 Fintech and Crypto IPOs 2025 – Boom or Bubble?
This IPO freeze highlights how geopolitical risks can directly impact fintech growth and public market access. With President Trump's protectionist policies, global fintechs looking to operate and access U.S. markets will now face new layers of risk and potential setbacks.
Conclusion
The current U.S. IPO environment is in a fragile state due to uncertainty and unpredictability of policy driven market shocks.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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