717 US companies filed for bankruptcy in 2025 as they struggled with Trump's tariffs, inflation: Report

Corporate bankruptcies rose sharply in 2025, reportedly reaching levels last seen in the years following the Great Recession (2007-2009), as businesses struggled with high tariffs, inflation and elevated interest rates.

According to an analysis by The Washington Post, at least 717 companies filed for bankruptcy through November, based on data from S&P Global Market Intelligence. This marks an increase of about 14% compared to the same period in 2024 and represents the highest number of filings since 2010, noted the report.

Unlike previous years, the surge was most pronounced in the industrial sector, which included manufacturing, construction and transportation firms.

These businesses have been vulnerable to rising costs linked to trade policies by the Trump administration that disrupted supply chains and increased the price of imported materials. 

Despite claims that tariffs would strengthen domestic manufacturing, federal data shows the sector lost more than 70,000 jobs over the 12 months ending in November, said the report.

Consumer-facing companies selling non-essential goods and services formed the second-largest group of bankruptcy filings. This category, which often leads to bankruptcy counts, includes retailers and lifestyle brands. The trend suggests that consumers, worn down by persistent inflation, are focusing on basic necessities.

In many cases, however, firms entered bankruptcy with underlying financial weaknesses that existed before tariffs took effect, as per the report.