Corporate bankruptcies surged in 2025, rivaling levels not seen since the immediate aftermath of the Great Recession, as import-dependent businesses absorbed the highest tariffs in decades under President Trump's trade policies.
Since returning to the White House in January, Trump has overturned decades of U.S. trade policy, building a wall of tariffs around what used to be a wide open economy. His double-digit taxes on imports from almost every country have disrupted global commerce and pushed many businesses to the brink.
The erratic way the president rolled out his tariffs—announcing them, then suspending or altering them before conjuring up new ones—made 2025 one of the most turbulent economic years in recent memory. Companies struggled to plan for the future amid constantly shifting trade rules.
Despite strong stock market performance, with the S&P 500 climbing nearly 18% this year, many businesses on Main Street faced a different reality. The disconnect between Wall Street gains and small business struggles has become a defining feature of the 2025 economy.
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