Tag: Tariffs

Bankruptcy tends to stay out of the public’s focus–and by extension Congress’s–when the economy is doing well. That’s where we are now, with unemployment rates still sitting around 4% and inflation rates mostly under control. Because of that, Congress finally allowed the COVID-era small business chapter 11 bankruptcy eligibility threshold increases to expire. There has not been a major piece of legislation introduced since January that touches Chapter 11 or 13 bankruptcies.

The United States economy contracted by 0.3% in the first quarter of 2025, according to the Commerce Department, the first quarter of decline since 2022. The decline in gross domestic product (GDP) is due to a large surge in imports despite other parts of the economy slowing down, all while inflation remains high.

Tariffs, taxes or duties imposed by a government on imported or exported goods, have gained significant attention in recent months. For credit professionals, tariffs can influence trade credit terms, payment schedules and risk assessments. They may also impact the cost structure of international transactions, affecting the pricing and profitability of goods.

As the construction industry prepares for the effects of Present-elect Donald Trump’s economic policies—such as tariffs on imported materials, reduced tax rates and deregulation—credit managers face both opportunities and risks. While these measures could stimulate industry growth, they also have the potential to drive inflation, increase interest rates and escalate government debt.

Sanctions were a cornerstone of President-Elect Donald Trump’s first administration’s foreign policy strategy. Following his victory in the 2024 election, many are expecting to see an increase in sanctions and tariffs, but the extent is still unclear.