Global Markets Rattle: Tariffs Trigger IPO Turmoil

Recent U.S. tariffs are causing significant disruptions in global markets, halting acquisitions and IPOs in the U.S., Europe, and Israel. Market volatility and fears of a recession have led companies like Klarna, Chime, and eToro to delay public offerings, while private equity transactions are being reconsidered.

The introduction of new U.S. tariffs by President Donald Trump has sent shockwaves across global financial markets, affecting deals from Wall Street to Europe. The tariffs, which range from 10% to 50%, have provoked fears of an economic downturn and intensified trade tensions as China responded with its own tariffs.

Key companies such as Sweden's Klarna and San Francisco's Chime have postponed their IPOs, while a private equity firm withdrew from a tech purchase in Europe due to the uncertain climate. This economic instability caused the S&P 500 and other indices to record their steepest downturn since 2020.

Experts are voicing concern about the chilling effect this uncertainty could have on corporate confidence and economic growth. Market watchers are predicting a challenging road ahead for IPOs, with companies like StubHub and eToro holding back investor presentations to wait for calmer conditions.

(With inputs from agencies.)