No fewer than 717 companies<\/a> filed for Chapter 7 or Chapter 11 bankruptcy between January and November, according to S&P data reviewed by The Washington Post. This marks a 14 percent increase from the same period in 2024 and the highest rate since 2010, when the country was recovering from the Great Recession.<\/p>\n Firms that went bust pointed to inflation, interest rates and Trump\u2019s trade policies<\/a> \u2014 which have hampered supply chains and increased costs \u2014 as drivers of their financial troubles.<\/p>\n Business experts and economists told the Post that the Republican president\u2019s broad tariffs<\/a> have strained import-dependent companies. While inflation recently came in lower than expected \u2014 it was up 2.7 percent year-over-year in November \u2014 experts said many firms continue to shoulder added expenses to avoid raising prices for consumers.<\/p>\n \u201cThese companies are acutely aware of the affordability crisis confronting the average American,\u201d Jeffrey Sonnenfeld, a professor at Yale University\u2019s school of management, told the outlet. \u201cThey 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 \u2026 others will fold.\u201d<\/p>\n open image in gallery<\/p>\n Corporate bankruptcies surged to a 15-year high in 2025 as businesses struggled to cope with President Trump’s trade wars, according to a new report (AFP via Getty Images)<\/p>\n The White House, however, has lauded tariffs as a net positive for the country.<\/p>\n \u201cTariffs are creating GREAT WEALTH<\/a>, and unprecedented National Security for the USA,\u201d Trump wrote on Truth Social on Saturday. \u201cTrade deficit has been cut by 60%, totally unheard of. 4.3% GDP, and going way up. No inflation!!! We are respected as a Country again.\u201d<\/p>\n The increase in bankruptcy filings was most notable among industrials \u2014 firms linked to construction, manufacturing and transportation, the Post noted. The industry ranks among those hit hardest by Trump\u2019s tariffs, with the manufacturing sector posting 70,000 job losses year-over-year in November.<\/p>\n Consumer-oriented companies offering \u201cdiscretionary\u201d services or products, including those in home furnishing or fashion, made up the second-biggest group. There was also a sizable surge in \u201cmega bankruptcies\u201d \u2014 filing by firms with over $1 billion in assets.<\/p>\n open image in gallery<\/p>\n Spirit Airlines, the low-cost carrier, filed for Chapter 11 bankruptcy in August, marking its second filing in less than 12 months (Getty Images)<\/p>\n![\"Corporate](\"https:\/\/www.newsbeep.com\/ca\/wp-content\/uploads\/2025\/12\/GettyImages-1252518998.jpeg\")
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