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Klarna, Chime public offerings among deals affected

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US M&A already down 13% in first quarter on trade woes

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Trend could hit businesses' ability to raise capital

By Echo Wang, Charlie Conchie and Milana Vinn

April 4 (Reuters) - From Wall Street to Israel and

Sweden, U.S. President Donald Trump's new tariffs -- and the

global equities sell-off they sparked -- have rapidly scuttled

acquisitions and IPOs.

The additional U.S. tariffs, which range from 10% to 50%,

announced on Wednesday sparked fears of a recession and

spiraling trade war, reinforced by China's announcement on

Friday of its own new tariffs on U.S. goods and export controls.

Among the deals, Swedish fintech Klarna pulled its IPO, and

San Francisco fintech Chime is also delaying its initial

offering, according to people familiar with the deals.

A London private equity firm pulled out of buying a

European mid-cap tech company at the last minute on Thursday

after the tariff news, a person close to the deal said.

StubHub was set as recently as Thursday to start its

investor roadshow next week for its already delayed IPO. But by

the end of the day, executives decided to push those plans back

for at least another week,

Israeli-based financial services company eToro also delayed

investor presentations for its IPO on Wall Street from Monday

until after April 20 due to market conditions and volatility,

according to someone familiar with the deal.

"It will be very tricky to get any deal to the finish line

as cost of debt is expected to go up and it will be harder to

ascertain valuations of companies," a senior banker said.

If the trend continues, it could stifle companies' ability

to raise funds and to invest, further slowing economic growth.

Even before Trump's latest tariff announcement, new U.S.

tariffs and worries about trade contributed to a 13% decline in

U.S. mergers and acquisitions in the first quarter, Dealogic

data compiled for Reuters showed.

"It's not the tariffs, per se, that are the problem," said

Antony Walsh, corporate M&A partner at law firm Eversheds

Sutherland. "It's the level of uncertainty that's coming with

them that's having the most impact on C-suite confidence."

The trade war has sent global markets spiraling, with the

S&P 500 and other U.S. indices marking their worst losses since

2020 on Thursday and falling further on Friday after China's

announcement. Investment bank JP Morgan raised the odds of a

recession by year's end to 60%, up from 40%.

The London private equity investor who canceled the

European tech company purchase said Thursday's market turmoil

deterred the firm from proceeding.

'PIPELINE MORE CHALLENGING'

"We just couldn't pull the trigger... We just don't know how

Europe is going to react, what this all means for the macro

environment, trade wars, etcetera," he said, asking not to be

identified because the deal isn't public.

At StubHub, executives plan to wait at least a week, maybe

even after Easter, before attempting to pitch Wall Street on its

shares to give the markets some time to calm down.

Tom Godwin, partner at global law firm Freshfields, said

there's too much uncertainty in the markets right now, along

with mixed messages from the Trump administration creating more

havoc in the markets.

Philipp Suess, head of equity and capital markets for

Germany and Austria at Goldman Sachs, said large expected IPOs

have not materialized due to market volatility, without

commenting on any particular transaction.

"It's clear after last Wednesday night that the IPO pipeline

has become more challenging," he told Reuters in an interview.