A wave of market volatility sparked by new U.S. tariffs has prompted several high-profile companies to slam the brakes on their plans to go public. In the weeks since the White House announced fresh tariffs on April 2, more than $120 billion worth of initial public offering (IPO) value has been put on hold. Tech and fintech firms that were gearing up for stock market debuts are now taking a wait-and-see approach as they navigate the choppy market conditions.
Market experts say the tariff news has injected a heavy dose of uncertainty into stocks, making it a rough time for companies to launch an IPO. “It’s week to week in terms of launch decisions,” explained Evan Riley, who leads equity capital markets for the Americas at BNP Paribas. In other words, companies are reassessing their timing constantly, and “a lot will have to change for IPO activity to resume,” Riley noted. With markets whipsawing on trade headlines, advisors are urging caution and flexibility. After all, an IPO isn’t just a one-day event – it requires weeks of roadshows, regulatory filings, and marketing. Trying to pull that off when the market is in turmoil is a tall order, so firms are opting to sit tight for now.
IPO Plans Put on Hold by Big Names
Just two days after the first tariff announcement, word got out that a number of prominent tech and finance players were pumping the brakes on their IPO plans. According to reports on April 4 (only 48 hours after the tariff news), at least five companies in various stages of the IPO process hit pause or decided to rethink their strategies. These include some well-known names across different industries:
- Klarna – the Swedish “buy now, pay later” fintech giant had filed paperwork to go public, but pulled back about three weeks later as the post-tariff market volatility battered stocks in the BNPL sector.
- StubHub – a popular online ticket marketplace, which was exploring an IPO, put those plans on ice amid the uncertainty.
- Chime – a fast-growing digital banking (fintech) company that chose to hold off on its anticipated public listing for now.
- Hinge Health – a virtual physical therapy startup that decided to step back from moving forward with its IPO given the volatile conditions.
- Circle – a cryptocurrency finance firm (Circle Internet Financial) that also shelved its IPO ambitions until the market steadies.
All together, these companies carry an estimated valuation north of $120 billion. The fact that such a hefty chunk of IPO value is in limbo underscores how skittish the climate has become. Essentially, since April 1 (the day before the tariff news hit), the IPO pipeline for many big private firms has frozen up.
For the companies involved, this delay means waiting longer to tap public markets for fresh capital and delaying potential paydays for early investors and employees. It’s a tough call, but most would rather postpone an IPO than risk a flop in a turbulent market.
M&A Dealmaking Loses Steam as Caution Spreads
It’s not just IPOs feeling the chill – mergers and acquisitions (M&A) activity has slowed down as well. Would-be dealmakers appear to be in “wait-and-see” mode just like the IPO hopefuls. One factor is that businesses are trying to gauge how regulators in the current administration will handle big mergers, especially with mixed signals on antitrust enforcement. The overall uncertainty (from trade policy to regulation) is making companies think twice about major moves.
So far in 2025, merger deals have taken a noticeable dip. Year-to-date through April 21, the number of M&A deals is down about 19% compared to the same period last year, based on industry data. That’s a significant slowdown, highlighting a broad reluctance to pursue large acquisitions in this environment. In practical terms, many companies are holding off on buying rivals or making strategic mergers until they have a clearer read on the market and regulatory landscape. Dealmaking lawyers and bankers are effectively on standby, as clients hold back unless conditions improve.
A Cautious Outlook for Companies and Markets
For now, both IPO hopefuls and potential merger partners are playing a waiting game. The tariff-driven market turbulence has put corporate plans in a holding pattern, and everyone from startup CEOs to Wall Street bankers is watching for signs of calm. The pause in IPO activity means fewer high-profile stock debuts in the near term, which in turn deprives the market of some anticipated excitement (and investors of new opportunities). Meanwhile, the dip in M&A means fewer big deals making headlines and possibly a slower growth strategy for firms that might otherwise expand through acquisitions.
The silver lining is that this caution could prove temporary. If trade tensions ease or the market finds its footing, those sidelined IPOs could quickly roar back to life. The same goes for M&A – a more stable outlook or clearer rules from Washington might unleash a wave of pent-up dealmaking. But until that happens, companies large and small are in “wait” mode, prioritizing stability over swift expansion. In the meantime, market watchers will be keeping a close eye on tariff developments and economic signals, hoping for the moment when these frozen plans can finally thaw out and move forward.