ESR Cayman Ltd. has deferred its planned IPO of as much as $1.4 billion in Hong Kong due to market volatility amid trade tensions, Reuters reported, citing two people with direct knowledge.

The unsteady market was due to the friction between the U.S. and China, as well as Washington's new tariff threats against Mexico, according to the report.

The logistics property developer was expected to launch the IPO June 3, sources said. However, the Warburg Pincus LLC-backed company could still open books for the IPO later in the week of June 3 depending on the market, they added.

ESR intends to use the proceeds to pay debt and redeem preference shares, among other plans, according to the report. CLSA and Deutsche Bank are handling the deal.

ESR did not immediately answer a request for comment, the report noted.