Figma shares dropped 6.29% to $27.71 after President Trump announced new tariffs on eight European nations, sparking fears that escalating trade tensions could trigger European IT spending cuts and hiring freezes, directly impacting the company's subscription revenue model.
- The tariffs, affecting key markets like Germany and the UK, are set to begin at 10% on February 1st and escalate to 25% by June.
- Figma is highly vulnerable as it derives substantial revenue from Northern Europe and the DACH region, where its design platform and FigJam tool are widely adopted by tech and fintech companies.
- The stock's decline significantly outpaced the broader Technology sector's loss, reflecting sector-specific vulnerability to European macro uncertainty.