Trump’s Tariffs Trigger Wave of Bankruptcies and Legal Controversy in U.S. Courts

• Companies blame Trump’s tariffs for bankruptcy
• Economists question that argument
• Real impact remains uncertain

According to El Financiero, the word “tariffs” is becoming increasingly common in U.S. bankruptcy court filings.

Since April, at least ten companies have cited the trade tariffs imposed by President Donald Trump as a key reason for their financial collapse.

One of the most recent examples is At Home Group, a home goods retailer with over 250 stores nationwide.

During its bankruptcy hearing to eliminate nearly $2 billion in debt, the company’s legal team pointed directly to the new tariffs.

Economists Cast Doubt on the Narrative

⭕⭕ #Breaking 📝 | At least ten U.S. companies cite Trump’s tariffs (@POTUS) as the cause of their bankruptcies. Experts challenge that claim, pointing instead to internal mismanagement as the true source of the collapse. https://t.co/2sxthrE6Nv pic.twitter.com/IYBbhybytB

— Los Reporteros MX (@ReporterosMX_) July 19, 2025

But At Home is not alone.

Tile importer Mosaic, auto parts supplier Marelli Holdings, and aluminum distributor Sinobec Group have all also cited the tariffs imposed by Trump as a decisive factor in their financial struggles.

According to data compiled by Bloomberg, tariffs have been explicitly mentioned in at least ten bankruptcy proceedings in less than four months.

Still, many economists remain skeptical of this explanation.

Firms in Bankruptcy Seek External Scapegoats

Experts argue it’s premature to blame tariffs for such a deep financial impact.

Most companies maintain inventories that last several months, which blunts the immediate effect of customs duties.

Additionally, the U.S. economy remains robust.

Unemployment is low, wages are rising, and consumer spending is strong.

Trump’s Tariffs Become a Convenient Excuse

More and more companies in the U.S. cite tariffs as the reason for their bankruptcy—despite doubts over the real impact.

➡️ https://t.co/3mGiN1FhWU pic.twitter.com/rkY0huPWeX

— El Financiero (@ElFinanciero_Mx) July 18, 2025

Market analysts say these bankruptcies reflect a familiar corporate tactic: blaming external forces instead of acknowledging internal missteps.

Stephanie Roth, chief economist at Wolfe Research, summed up the general view: Trump tariffs are not yet the direct cause of the wave of bankruptcies.

At Home’s own history supports that view.

Acquired by private equity firm Hellman & Friedman in 2021, the retailer was already burdened with significant debt well before the tariffs were enacted.

Structural Changes Explain Other Collapses

The COVID-19 pandemic disrupted its supply chain, increasing costs for materials and labor.

Later, changing consumer preferences—shifting toward travel and entertainment—diminished demand for home goods.

Headquartered in Texas, the company recently announced the closure of at least 26 stores.

One of them, located in Rego Park, New York, displayed clearance sale signs as disappointed customers browsed the discounts.

Automotive Sector Also Hit by Trump Tariffs

At Home declined to comment publicly.

Another notable case was Marelli, a parts supplier for Nissan and Stellantis.

The company stated that tariffs introduced in March severely impacted its cash flow.

However, it also admitted to facing financial challenges well before then.

Trump’s Tariffs Alone Don’t Explain Everything

The shift toward electric vehicles had already started reducing demand and complicating operations.

“Production volumes started declining a year ago, before the tariffs,” said a company spokesperson.

The solar industry has also felt the strain.

Sunnova Energy International said in June that, in addition to tariffs, inflation, high interest rates, and reduced subsidies were hurting its sales.

Economic Uncertainty Could Worsen Bankruptcies

SunPower, Lumio, and U.S.-based Meyer Burger have also filed for bankruptcy in the past year.

, analysts warn that the real impact of the tariffs could grow in the coming months depending on how Trump’s administration moves forward with trade measures.

Warning signs are already emerging.

Moody’s reported this week that the number of companies at high risk of default is at its highest point in 11 months.