America trapped in its own trap! Trump’s tariff bet fails, companies on the verge of bankruptcy

Recession In America: Donald Trump may be making many claims to justify the tariff and calling it an increase in revenue in America, but the picture looks completely different. According to the report, the cases of bankruptcy of companies in America have reached a 15-year high in this year 2025. Companies are citing Trump tariffs as the main reason for this. Apart from this, inflation has made the situation worse.

According to a report by The Washington Post, there is a huge increase in the number of corporate bankruptcies in America in 2025, which appears to be equal to the level immediately after the Great Depression. Looking at the data from S&P Global Market Intelligence, between January and November, 717 companies applied for bankruptcy under Chapter 7 or Chapter 11. This is about 14% more than these 11 months of 2024, while it is the highest figure since 2010.

Maximum impact in industrial sector

Let us tell you here that Chapter 11 is also called restructuring, in which the company restructures its debts under a court-run process and continues operations. Under Chapter 7, the company is closed and its assets are sold. According to the report, American businesses that were directly dependent on imports faced the highest tariffs in decades.

The highest increase in bankruptcy filings was seen in the industrial sector, which includes construction, manufacturing and transportation companies. Economists see a contradiction in the U.S. economy and are saying many businesses are likely to struggle under the pressure of tariffs and other spending.

Reasons for bankruptcy of companies

Most of the companies that filed for bankruptcy cited inflation and interest rates as factors responsible for their financial challenges. Along with this, Trump administration’s trade policies were also said to be disrupting the supply chain and said that it has increased the costs.

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All these sectors have been badly affected by the constantly changing tariff policies of President Donald Trump. On the other hand, Trump has been seen claiming for a long time that this US manufacturing sector Help is being given in reviving it. Looking at federal data, the manufacturing sector lost more than 70,000 jobs in the one-year period ending in November. In such a situation, all Trump’s claims appear hollow.