New York — Skechers USA Inc. has announced a significant shift in its corporate strategy, opting to go private amid ongoing trade tensions that significantly affect the shoe industry. The company revealed Monday that it has reached an agreement for private equity firm 3G Capital to acquire Skechers for $9.4 billion, translating to a price of $63 per share—a notable 30% increase from its stock price prior to the announcement.

Skechers CEO Robert Greenberg expressed optimism about the deal, stating that partnering with 3G Capital will usher in a new chapter for the brand, which is already the third-largest footwear manufacturer globally. Following the announcement, shares of Skechers surged by 25%, indicating investor confidence in the move.

Based in Southern California, Skechers operates around 5,300 outlets throughout the United States. The footwear sector has become increasingly vulnerable due to tariffs imposed by the U.S. government, which include steep duties of up to 145% on products imported from China. As a result, companies that rely heavily on overseas manufacturing are facing heightened scrutiny and operational challenges.

According to the Footwear Distributors and Retailers of America, a staggering 99% of shoes sold in the U.S. are produced outside the country. Analysts estimate that Skechers, which sources nearly 40% of its products from China, is particularly susceptible to the adverse effects of these tariffs. The company recently withdrew its financial forecasts, citing the uncertain climate surrounding trade regulations.

With shares plummeting 26% year-to-date due to concerns over the impact of the trade war, Skechers is perceived as an appealing acquisition target. Neil Saunders, an analyst at GlobalData Retail, noted the potential for long-term growth amid short-term market disruption.

In a recent letter to President Donald Trump, Skechers, along with other prominent footwear brands such as Nike and Under Armour, urged the administration to exempt the footwear industry from current tariffs. The companies articulated that the tariffs present an existential threat, potentially jeopardizing numerous businesses and thousands of jobs while leading to higher costs for consumers.

The situation underscores a critical juncture in the industry as companies navigate the challenges posed by global trade dynamics. While the immediate future may hold uncertainties, the strategic partnership with 3G Capital signals Skechers’ intent to solidify its market position and mitigate risks associated with external economic pressures.