Swedish fintech Klarna has paused its plans for a U.S. initial public offering as President Donald Trump‘s sweeping tariffs rattle global markets, according to sources familiar with the situation.

The decision would complicate an uneven recovery for the U.S. IPO market, as the company’s listing was seen as a potential catalyst for encouraging others to follow.

Klarna could reassess its plans if market conditions stabilize, the people said.

While hopes of a recovery were high in 2025, some of the new entrants to the IPO market have seen muted receptions.

LNG exporter Venture Global’s shares have dropped since its January debut. AI infrastructure firm CoreWeave’s shares dipped on their first day of trading, but have climbed since then.

Fears of a trade war have crushed stocks after Trump unveiled the sweeping tariffs plan this week that could weigh on the global economy.

“This kind of market instability naturally makes any company, regardless of sector, hit the brakes on near-term IPO plans,” said Lukas Muehlbauer, research analyst at IPOX.

Klarna was aiming to raise more than $1 billion at a valuation exceeding $15 billion, according to media reports.

It had 93 million active customers on its platform and operations in 26 countries as of 2024 end, according to its IPO filing.

The company had soared to a valuation of $45.6 billion in 2021, but that has tempered since as the pandemic-driven surge in online spending moderated.

Klarna did not immediately respond to a Reuters request for comment. The Wall Street Journal, which first reported the plans, said the company had decided to postpone marketing its shares, originally scheduled for this week.

Meanwhile, U.S. stocks fell sharply for a second straight session on Friday, pushing the Nasdaq toward a bear market.