Klarna, a Swedish buy-now-pay-later (BNPL) company, has placed its long-anticipated U.S. public debut on hold, stepping back from its planned initial public offering due to growing market uncertainty triggered by fresh geopolitical tension.
The Swedish fintech firm was preparing to begin promoting its IPO to investors this week but decided to delay the process, citing recent turbulence following the Trump administration's announcement of new tariffs, the Wall Street Journal reports on Friday.
Klarna provides payment processing services for the e-commerce industry, managing store claims and customer payments.
On April 2, Trump announced reciprocal tariffs, including a 10% hike on all countries except Mexico and Canada, with higher rates for select nations with trade deficits.
The new reciprocal tariff policy would impose duties on imports from U.S. trading partners at a rate equal to half the tariffs those countries place on American products.
While full reciprocity was floated, Trump said the plan would cap U.S. retaliation at 50% of what foreign nations charge.
"To all of the foreign presidents, prime ministers, kings, queens, ambassadors and everyone else who will soon be calling to ask for exemptions from these tariffs, I say terminate your own tariffs. Drop your barriers. Don't manipulate your currencies," Trump said.
Jeremy Siegel, a finance professor emeritus at the Wharton School, delivered a stark warning today regarding President Donald Trump's broad tariff policy, suggesting it could have even more severe consequences than the notorious Smoot-Hawley Tariff Act of 1930.
With this background, Klarna isn't the only firm pulling back. Online ticketing platform StubHub has similarly postponed its IPO marketing plans, the WSJ report said.
Klarna's plans included listing on the New York Stock Exchange with a target valuation of $15 billion.
Klarna's U.S. rival, Affirm Holdings Inc.
It should be noted that Klarna announced a partnership with the consumer finance app OnePay to offer installment loan services exclusively for purchases at U.S. Walmart
