Bankruptcies At 15-Year High -- Thanks, Trump!

 

The economic and business genius that is the Malignant Fascist can take credit for more failure on his watch:

Corporate bankruptcies soared to a 15-year high in 2025 as companies struggled to cope with President Donald Trump’s trade wars, among other factors, according to a new report.

No fewer than 717 companies 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.

Firms that went bust pointed to inflation, interest rates and Trump’s trade policies — which have hampered supply chains and increased costs — as drivers of their financial troubles.

Business experts and economists told the Post that the Republican president’s broad tariffs have strained import-dependent companies. While inflation recently came in lower than expected — it was up 2.7 percent year-over-year in November — experts said many firms continue to shoulder added expenses to avoid raising prices for consumers.

“These companies are acutely aware of the affordability crisis confronting the average American,” Jeffrey Sonnenfeld, a professor at Yale University’s school of management, told the outlet. “They 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 … others will fold.”  [snip]

The increase in bankruptcy filings was most notable among industrials — firms linked to construction, manufacturing and transportation, the Post noted. The industry ranks among those hit hardest by Trump’s tariffs, with the manufacturing sector posting 70,000 job losses year-over-year in November.

Consumer-oriented companies offering “discretionary” services or products, including those in home furnishing or fashion, made up the second-biggest group. There was also a sizable surge in “mega bankruptcies” — filing by firms with over $1 billion in assets... (our emphasis)

It's an economy that works for the elite few and increasingly less for the many, just as the oligarchs and kleptocrats intended.  We haven't seen the end of the stagflation -- the job losses, inflation, and contracting consumer spending -- which could make 2026 look even worse than 2025.