Donald Trump may assert that tariffs boost America's revenue, but the reality is starkly different. According to reports, bankruptcy rates for US companies reached a 15-year high in 2025. Companies attribute this largely to Trump's tariff policies, which have tightened the economic noose, compounded by surging inflation.
Staggering US Statistics
The Washington Post reports a significant increase in US firm bankruptcies in 2025, drawing parallels with post-recession levels. S&P Global Market Intelligence reveals that between January and November, 717 companies filed for Chapter 7 or Chapter 11 bankruptcy—14% more than during the same period in 2024, marking the highest since 2010.
Import-Dependent Businesses Collapse
Businesses heavily reliant on imports faced one of the harshest tariff regimes in decades. This surge in bankruptcy filings hit industrial sectors the hardest, especially construction, manufacturing, and transportation. Economists note a paradox in the US economy, with many firms grappling under tariffs and rising operational costs.
The majority of the bankrupt companies cited inflation and policy interest rates as key financial stressors, alongside the Trump administration's trade policies, which disrupted supply chains and escalated costs.
Hollow Claims?
President Trump's fluctuating tariff strategies have severely impacted these sectors, yet he continues to claim that they are revitalizing American manufacturing. Federal data, however, shows that over 70,000 manufacturing jobs were lost in the year ending November, underscoring the hollowness of Trump's assertions.
Source: aajtak
Highest Since Pandemic
In the first half of 2025, there was a substantial rise in bankruptcy cases, especially among companies with assets exceeding $1 billion. Economic advisory firm Cornerstone Research reported 17 such cases from January to June, marking the highest number since the COVID-19 outbreak in 2020. Companies like At Home and Forever 21 led the retail bankruptcies.
Cornerstone’s head Matt Osborne cited inflation and interest rates as significant factors affecting consumer demand and complicating capital raising for major firms.
Expert Analysis
Economists and business experts argue that trade wars have strained import-dependent businesses, causing them to hesitate in raising product prices out of fear of alienating consumers.
Yale School of Management professor Jeffrey Sonnenfeld states that these bankrupt companies are acutely aware of the inflation crisis facing everyday Americans. While they attempt to mitigate tariff costs, their options are limited. Price-controlling businesses may pass these costs onto consumers over time, while others face closure. Notably, the White House has not commented on this issue.
