Corporate bankruptcies in the United States surged to their highest level in 15 years in 2025, as companies grappled with the combined pressures of President Donald Trump’s trade policies, elevated interest rates, and lingering inflation, according to new data cited by The Washington Post.
At least 717 companies filed for Chapter 7 or Chapter 11 bankruptcy between January and November 2025, based on S&P Global data reviewed by the newspaper. That figure represents a 14 percent increase compared with the same period in 2024 and marks the highest level of corporate bankruptcy filings since 2010, when the U.S. economy was emerging from the Great Recession.
Businesses that sought bankruptcy protection pointed to higher operating costs, supply-chain disruptions, and the impact of broad-based tariffs as key contributors to their financial distress. Economists and business analysts said import-dependent firms have been particularly strained by the administration’s trade wars, which raised costs for raw materials and intermediate goods.
Although inflation has shown signs of easing—rising 2.7 percent year-over-year in November, lower than many forecasts—experts noted that many companies are absorbing higher costs rather than passing them fully on to consumers.
“These companies are acutely aware of the affordability crisis confronting the average American,” said Jeffrey Sonnenfeld, a professor at Yale University’s School of Management. “They are doing their best to offset the cost of tariffs and higher interest rates but can only do so much. Those with pricing power will pass on the costs over time … others will fold.”
The White House has defended tariffs as economically beneficial, with President Trump arguing they have boosted national security, cut the trade deficit, and driven strong economic growth. In a recent social media post, Trump described tariffs as creating “great wealth” and insisted the U.S. economy is being newly respected on the global stage.
However, the bankruptcy data reveal uneven effects across industries. Industrial firms—particularly in construction, manufacturing, and transportation—accounted for the largest share of filings, sectors that analysts say have been among the hardest hit by tariffs. The manufacturing sector alone recorded 70,000 job losses year-over-year in November.
Consumer-facing businesses offering discretionary goods and services, such as home furnishings and fashion, formed the second-largest group of bankruptcies. Analysts also observed a notable rise in “mega bankruptcies,” involving companies with more than $1 billion in assets.
Several high-profile firms filed for bankruptcy in 2025, including Spirit Airlines, which sought Chapter 11 protection in August, its second filing in less than a year. PosiGen, a Louisiana-based solar company, followed in November, citing tariffs on imported solar materials and reductions in federal tax incentives for renewable energy.
Federal data analyzed by Jason Miller, a business professor at Michigan State University, showed that the effective tariff rate on imported solar materials rose to about 20 percent after May, up from less than 5 percent in previous years.
“That places a lot of strain on cash flow, especially for smaller importers,” Miller said. “You then combine this with reduced federal incentives that have to be negatively impacting demand, and you have a perfect storm for elevated rates of bankruptcy.”
Economists say the spike in bankruptcies highlights contradictions in the broader U.S. economy. Government data released this week showed the economy growing at an annual rate of 4.3 percent, the fastest pace in two years. Yet analysts caution that the gains are uneven, driven largely by spending from wealthier consumers and corporate investments in artificial intelligence.
“We have an economy that looks strong on paper, but that might not necessarily be reflected in every single industry,” said Martin Schoenberger, an economist with KPMG.
