U.S. corporate bankruptcies reached a 15-year high in 2025 due to high rates, inflation, and tariffs, especially hitting solar and manufacturing sectors.

U.S. corporate bankruptcies hit a 15-year high in 2025, with 717 companies filing for Chapter 11 or Chapter 7 protection by November—14% more than in 2024. The surge is tied to high interest rates, persistent inflation, and aggressive trade policies, including steep tariffs on imports that raised costs for manufacturers, retailers, and solar firms. Industries like manufacturing, construction, and consumer goods saw sharp increases in filings, with several high-profile "mega bankruptcies" involving firms with over $1 billion in assets. Solar companies were particularly affected by tariffs that rose from under 5% to about 20%, combined with reduced tax incentives. Despite inflation cooling to 2.7% and GDP growth reaching 4.3%, many businesses struggled to absorb rising costs, leading to closures and job losses.