Three Things (4/7)

Tariff Tensions Freeze IPO Plans

Unsteady market conditions have prompted Klarna and StubHub—two of the most closely watched IPO candidates of 2025—to delay their planned public listings. Investor sentiment has been rattled by a mix of factors: renewed trade tensions, rising geopolitical risk, and persistent uncertainty around interest rate timing. While headlines have focused on proposed tariffs, the broader impact includes a spike in volatility that’s making companies think twice about going public. Even strong, profitable brands are opting to stay private rather than enter markets where pricing and momentum are hard to predict.

Beyond tariffs, the uncertain interest rate environment and jittery investor sentiment are also weighing heavily on the public markets. While a handful of names have gone public this year, performance has been mixed, and most new listings have struggled to maintain early momentum. Klarna and StubHub’s decision to delay underscores how fragile the IPO recovery remains. Until macro risks—ranging from trade shocks to rate policy—become more predictable, expect a slower-than-hoped reopening of the market, especially for consumer-facing and international firms sensitive to supply chain pressures.

Fed Warns Tariffs Stoke Inflation

Federal Reserve Chair Jerome Powell said Friday that newly proposed tariffs are “larger than expected” and will likely put upward pressure on inflation while slowing economic growth. The combination of potential price increases and weakened demand presents a complex challenge for the Fed, as it tries to balance its dual mandate of stable inflation and maximum employment. Powell noted that the central bank now faces elevated risks on both fronts—and that the impact of these tariffs could take time to fully assess.

Despite calls from within the administration for interest rate cuts to support the economy, Powell made clear that the Fed isn’t ready to move. Instead, he signaled a pause in policy changes, emphasizing a need to “wait and see” how these new trade measures ripple through markets and consumer prices. The message was firm: the path to rate relief just became more uncertain, and monetary policy will remain on hold until inflation expectations are better anchored.

TikTok in the Crosshairs (Again)

The deadline for ByteDance to divest TikTok’s U.S. operations—originally set for April 5th—has been extended by 75 days, giving the company more time to negotiate a sale that satisfies national security concerns. The extension delays a potential ban and provides temporary relief to TikTok’s 170 million American users, including millions of content creators who rely on the platform for income, brand exposure, and community engagement. While the legislative push remains strong, the new window signals a willingness to find a resolution that avoids immediate disruption to the creator economy and U.S. digital culture.

Several potential buyers, including Oracle, Amazon, and a group led by OnlyFans founder Tim Stokely, are reportedly exploring bids. However, the backdrop has become more complicated with the announcement of sweeping new U.S. tariffs, including a proposed 54% levy on Chinese imports. The heightened trade friction may harden Beijing’s stance against approving a sale and reduce the odds of a smooth outcome. As national security concerns, global trade tensions, and tech competition converge, TikTok’s future in the U.S. remains precarious—caught between policy, politics, and platform power.