During a Q&A with Treasury Secretary Scott Bessent on Monday, financier Michael Milken told the nation’s chief financial officer that he has a phone alert set up to notify him of Treasury yield movements of more than 2% in a two-hour period. “Please don’t share that with the president,” Bessent joked.

The quip came at the Milken Institute’s Global Conference in Los Angeles, where the treasury chief preached calm and patience in the face of tariff uncertainty to the closely watched annual gathering of CEOs, billionaires, and investors from around the world.

Keep Calm and Tariff On

During his prepared remarks before the Q&A, Bessent surprised absolutely no one by touting the US as “the premier destination for international capital” and defending President Trump’s planned (or, in the case of China, real) tariffs on foreign imports. That’s his job.

But he also gave investors a crystallized view of the administration’s thinking on economic policy at a time when many have publicly voiced concerns about a seemingly haphazard approach to trade. One month after a theatrical Rose Garden presentation announcing global tariffs that have since been paused until July, the administration has yet to make a deal with any affected countries. But tariffs, Bessent said, were never meant to be isolated actions and instead are part of a triumvirate of “trade, tax cuts, and deregulation” that he called “interlocking parts of an engine designed to drive long-term investment in the American economy.” He then made the case for how this could work:

• Bessent previewed forthcoming Republican tax legislation, which he said would include research and innovation credits, as well as 100% expensing for equipment and new factory construction on top of plans to extend Trump’s 2017 tax cuts for individuals and businesses. In other words, while trade barriers and import costs may go up, investment in the US will be rewarded with incentives (which he said could be enacted by July).
• For Wall Street in particular, Bessent said the booming $1.7 trillion private credit industry suggests bank lending is overregulated and that he is looking into a “safe, sound and smart” approach to easing regulatory hurdles.

After addressing the conference, Bessent told CNBC that the US, which experienced a 0.3% economic contraction in the first quarter, can drive growth to 3% “by this time next year.” That would require heavy lifting by the trade-tax cut-deregulation triumvirate: The Congressional Budget Office projects GDP will grow 1.9% this year and 1.8% in 2026 while the IMF forecasts 1.8% growth in 2025 and 1.7% in 2026.

Wait and See: Bessent’s optimism isn’t shared by everyone. KKR co-founder Henry Kravis told the conference that CEOs are concerned about Trump’s trade war, which he said is “at the top of everyone’s agenda.” Jane Fraser, the chief executive officer of Citigroup, said clients are “prepping for headwinds” and that some businesses are delaying investment until they have a clearer picture of how (or if or when) the Trump administration will proceed with tariffs.

A buyout looks like a salve for shoe companies down on their heels as a result of tariffs.

Skechers, known for its comfortable and affordable sneakers, has agreed to a $9.4 billion deal to be taken private by 3G Capital. The company’s stock jumped 25% on Monday, closing in on the per-share buyout price of $63.

For Sale: Good Shoes, Unforeseen Circumstances

Shoe stocks hit the skids this year as the footwear industry started to digest the potential impact of the Trump administration’s trade policy. Nearly all of the shoes sold in the US are sourced internationally, primarily from China, Vietnam, and Cambodia, making tariffs particularly existential for shoemakers.

A letter published last week from the industry group Footwear Distributors & Retailers of America, and signed by dozens of companies from Adidas to VF Corp, asked President Trump for a reprieve. “We are in fact the one industry where tariffs do not significantly increase domestic production; tariffs just become a major impact at the cash register for every family,” it read.

While athletic sneaker shops like Nike and Under Armour have been charting turnaround plans to revitalize flagging sales, Skechers has been gaining traction as a brand and progressing toward its goal of $10 billion in revenue by 2026. According to Stifel, Skechers sources 40% of its products from China.

The Manhattan Beach, Calif.-based company’s shares tumbled from highs in February after it reported a more challenging macroeconomic environment in China, with sales in the country declining in its fiscal fourth quarter. In late April, CFO John Vandemore compared the level of uncertainty Skechers is facing to the early phases of the COVID pandemic. The company also withdrew its 2025 guidance, citing uncertainty stemming from global trade policies.

3G Capital’s buyout of Skechers is the biggest in footwear history. PitchBook’s data on buyout activity in the global footwear industry shows how the deal ranks with others:

• Hong Kong-listed Belle International was taken private in a $6.8 billion deal led by private equity firms Hillhouse Capital Group and CDH Investments in April 2017.
• Birkenstock sold a majority stake to LVMH-backed private equity firm L Catterton for $4.8 billion in February 2021. Adidas sold Reebok to Authentic Brands Group (ABG) for $2.5 billion in August 2021.

A steal: 3G Capital’s deal for Skechers could look like a bargain if the Trump administration backs down on tariffs or exempts footwear brands.

“A Minecraft Movie” may take place in Idaho, but it was filmed in New Zealand. That’s because it makes more financial sense to create a fake potato-chip factory in a country where international films get a 25% rebate.

President Trump wants to bring film-making back to Hollywood by imposing 100% tariffs on movies produced outside of the US, which he said represent a national security threat. Trump said he’s already greenlit preparation of his latest plan by the Commerce Department and the US Trade Representative. Back in January, he called on Mel Gibson, Sylvester Stallone, and Jon Voight to be special ambassadors charged with luring business to Los Angeles.

Starring Canada as California

The shares of major media companies including Netflix, Disney, and Warner Bros. Discovery dipped on the tariff news. Many of the biggest box office hits, including the latest “Jurassic Park” and “Mission Impossible” movies, are shot mostly outside of the US.

Countries like the UK and Canada have become hotspots for film-making because of government incentives and lower labor costs, while the US (and especially Los Angeles) have been losing days on set.

• Spending on big-budget film and TV productions in the US plunged 26% from 2022 to last year, according to ProdPro, while budgets rose in the UK and Canada. IATSE, the union for entertainment workers from cinematographers to costume designers, found that the US film industry eliminated 18,000 full-time jobs in the past three years, mainly in California.
• Meanwhile, international content is climbing the “Most Watched” lists as viewers binge K-dramas. For the first time, Netflix is expected to spend more than half its content budget on international projects this year, according to Ampere Analysis.

Besides content that clearly has international origins, many big-budget productions (like Marvel movies or “The White Lotus”) span several countries. It’s unclear what criteria would land a film on Trump’s tariff list.

Hollywood not so forever. Hollywood film and TV workers held a rally last month demanding California legislators help “Make Hollywood Hollywood Again.” Tinseltown has struggled to scale production back up after strikes by writers and actors in 2023. But rather than punish international content, the state is trying to incentivize production at home. California Gov. Gavin Newsom has pushed for legislation that would more than double tax credits for film- and TV-making in the Golden State.