U.S. tariff policy severely impacts businesses: Skechers acquired by 3G Capital, while the Federal Reserve keeps interest rates unchanged as a measure against inflation.

In April of 2025, the United States imposed tariffs of up to 145% on Chinese goods, leading to higher business costs and supply chain disruptions. Skechers, the third-largest footwear brand globally, unable to withstand the tariff pressure, was acquired by 3G Capital for $9.4 billion, marking the end of its history as a publicly traded company. On May 7, the Federal Reserve maintained interest rates, focusing on fighting inflation even as economic growth slowed. This tariff policy reshaped the global trade landscape and had a profound impact on the fate of American businesses.

Tariff Policy Triggers Wave of Business Closures

In April 2025, the U.S. government imposed tariffs as high as 145% on Chinese imports, with some items reaching 245%. This policy quickly sparked panic and a wave of reactions in the business community. According to data from the U.S. Department of Commerce, companies rushed to import goods in March to avoid the impending tariffs, causing the trade deficit that month to soar to a record high of $140.5 billion. The total import value reached $419 billion, with goods imports setting a record at $346.8 billion.

However, this buying spree did not lead to substantial economic growth; instead, it dragged down the GDP performance for the first quarter. The U.S. GDP annualized quarterly growth rate was -0.3%, marking the first negative growth in three years. Although domestic demand still saw a 3.0% increase, the contraction in trade and supply chain sectors was the main drag.

In such an environment, business operating pressures have increased significantly. Rite Aid, the third-largest drugstore chain in the U.S., has filed for bankruptcy for the second time, while toy manufacturer Mattel, with 40% of its products sourced from China, was forced to raise prices by 43% and is considering further price hikes and supply chain restructuring. Small business owners also reported that raw material tariffs as high as 25% to 46%, coupled with immigration policy restrictions on labor sources, have made it impossible to maintain operations.

Skechers: From Global Shoe King to Acquisition

The case of Skechers has become the most representative corporate turning point in this tariff storm. Founded in 1992, this American footwear brand has annual revenues of $9 billion, with products sold in over 120 countries and 5,300 stores, including 1,800 directly operated stores. In 2024, Skechers made a high-profile move by inviting NBA star Joel Embiid as a brand ambassador, showcasing its vitality.

However, with most of its production bases located in China and Vietnam, Skechers faced significantly increased operating costs due to high tariffs. According to CNN, Skechers requested tariff exemptions from the Trump administration but received no response. Ultimately, the company chose to accept an acquisition proposal from Brazilian-American investment firm 3G Capital.

The total value of this transaction is $9.4 billion, with 3G Capital acquiring all outstanding shares of Skechers at $63 per share in cash. Shareholders can also opt for a mixed option, including $57 in cash and shares in a newly established holding company. The transaction has been unanimously approved by the Skechers board and is expected to be completed in the third quarter of 2025. After the transaction, Skechers will be delisted from the New York Stock Exchange and become privately held.

Skechers CEO Robert Greenberg stated that the partnership with 3G Capital will help accelerate the brand's international expansion and supply chain restructuring. 3G Capital co-founder Alex Behring noted that Skechers demonstrates entrepreneurial spirit and growth potential, and they will continue to support its management team and operational strategy.

Federal Reserve Holds Steady, Focuses on Inflation Risks

Amid slowing economic growth and a wave of business closures, the U.S. Federal Reserve decided to maintain the benchmark interest rate between 4.25% and 4.5% at its policy meeting on May 7. Despite President Trump's repeated public demands for rate cuts to stimulate the economy, Fed Chairman Powell emphasized that "fighting inflation" is the top priority.

According to reports from The Wall Street Journal and NPR, Fed officials believe that the tariff policies could drive up prices, and cutting rates at this time could lead to a resurgence of inflation. Currently, the U.S. unemployment rate remains near historic lows, and although the inflation rate is slightly above the long-term target of 2%, it is showing a downward trend.

Analyses from Standard Chartered Bank and Citibank indicate that the Fed will continue to monitor whether the labor market shows significant weakness before considering rate cuts. Data from the Chicago Mercantile Exchange shows that the market expects a more than 95% chance that the Fed will not cut rates this time.

The Fed's decision reflects its difficult balance between inflation and economic growth. With tariff policies still unclear and business confidence shaken, the central bank has chosen to wait and see, avoiding prematurely sending signals of easing.

U.S. tariff policy severely impacts businesses: Skechers acquired by 3G Capital, while the Federal Reserve keeps interest rates unchanged as a measure against inflation.

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