Buy Now Pay Later (BNPL) player Klarna has paused its planned initial public offering (IPO) following the announcement of new tariffs by the US administration.
Several media reports suggest that this move follows market turbulence triggered by the tariffs.
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Last month, Swedish fintech filed for an IPO with the US Securities and Exchange Commission and expected to begin trading this week on the New York Stock Exchange under the ticker “KLAR.”
There is currently no set timeline regarding when Klarna will resume its offering.
The firm reported a net profit of $21m in 2024 as against a net loss of $244m in 2023.
Klarna cited the potential tariffs in a SEC filing: “A downturn in the general economic environment or a slower pace of economic growth, including as a result of changes in international trade policies, multilateral trade agreements or imposition of new tariffs, taxes and other restrictions on global trade, or changes to immigration policies or migration patterns, can lead to decreased consumer spending and adversely affect the financial condition of our merchants.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataRecently, US President Donald J. Trump imposed a reciprocal tariff policy to address trade deficits, with a 10% baseline tariff on all imports.
The White House Fact Sheet termed this move as a National Emergency.
The Fact Sheet further said that the policy allows “President Trump to increase the tariff if trading partners retaliate or decrease the tariffs if trading partners take significant steps to remedy non-reciprocal trade arrangements.”
Navigate the shifting tariff landscape with real-time data and market-leading analysis.
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