U.S. bankruptcies hit a 15-year high as Trump tariffs and high rates squeeze companies

U.S. corporate bankruptcies have climbed to their highest level in about 15 years, with elevated interest rates and President Donald Trump’s tariffs putting particular pressure on debt‑heavy and import‑reliant companies.​

What the headline refers to

• At least 717 U.S. companies filed for Chapter 7 or Chapter 11 between January and November 2025, a roughly 14% increase over the same period in 2024 and the highest tally since around 2010.​

• S&P Global data show large corporate bankruptcies on track to set a 15‑year high, with filings rising every year since 2022.​

Role of tariffs and trade policy

• Trump’s broad tariffs have raised input costs and disrupted supply chains, especially for firms that depend heavily on imported materials or components.​

• Industrial businesses tied to manufacturing, construction, and transportation are among the hardest hit, with S&P and news reports linking many failures in these sectors to higher tariff‑driven costs.​

Role of high interest rates and inflation

• Persistent inflation in recent years prompted the Federal Reserve to keep interest rates relatively high, which has increased debt‑servicing costs for leveraged companies and weakened cash flow.​

• Bankrupt firms frequently cite a mix of higher rates, inflation, and softer demand alongside tariff pressures as the reasons they could not remain solvent.​

Which companies and sectors are affected

• The industrial sector has logged the most filings, followed by consumer discretionary firms such as retailers and other sellers of non‑essential goods and services.​

• There has also been a notable rise in “mega bankruptcies” involving companies with over $1 billion in assets, indicating that larger firms as well as smaller ones are under stress.​

How this fits with a growing economy

• Official data still show solid headline GDP growth in 2025, boosted by strong spending from higher‑income consumers and corporate investment in areas like artificial intelligence.​

• Economists describe a two‑track economy in which some firms and households are doing well, while more fragile, rate‑sensitive, and trade‑exposed businesses are being pushed into bankruptcy by the combined squeeze of tariffs and financing costs.​