In 2025, corporate bankruptcies in the United States reached their highest level in 15 years, with more than 700 companies filing for bankruptcy through November. Economic reports from early 2026 attribute this surge to a combination of President Trump's "Liberation Day" tariffs, persistent inflation, and high interest rates.

Key impacts on business closures and survival as of January 2026 include:

Corporate Bankruptcies: At least 717 companies filed for Chapter 7 or Chapter 11 bankruptcy between January and November 2025, a 14% increase from the previous year and the highest since 2010.

Sector Impact:

Industrials: This sector was hardest hit, with 110 companies filing for bankruptcy due to rising manufacturing and supply chain costs linked to tariffs.

Consumer Discretionary: Retail and fashion businesses represented the second-largest group (85 filings), as import costs rose and consumer spending declined.

Agriculture: Farm bankruptcies rose sharply, with 181 filings in the first half of 2025 alone, surpassing the 115 filings from the same period in 2024.

Small Business Crisis: Approximately 74% of small-business owners expressed concern about surviving the next 12 months due to a threefold increase in tariff
costs since April 2025. Roughly 236,000 small-business importers paid an average of $151,000 in additional tariffs during the middle of 2025.

Retail Store Closures: Projections suggest that the escalating trade disputes could lead to as many as 12,000 retail store closures as businesses with low profit margins struggle to absorb higher import taxes.

Legal Challenges: More than 1,000 firms have filed lawsuits against the administration seeking tariff refunds, with cases currently facing the Supreme Court as of January 2026.