KTBS associate Eitan Arom writes for Law360 about the challenges and opportunities of using the bankruptcy process to deal with tariff debts.

Bankruptcy Courts May Offer Relief For Tariff-Driven Distress

Months after President Donald Trump’s “Liberation Day” tariff announcements, the financial distress caused by tariff uncertainty has begun to creep into major bankruptcy filings, with companies citing skyrocketing customs duties as one of the factors causing them to seek protection.

These filings — dubbed “tariff bankruptcies” in this article — could well be the first in a wave of more bankruptcies to come. As companies in import-related sectors consider bankruptcy as a strategic option, how the Bankruptcy Code treats tariff duties and related issues has taken on a new importance.

Law360 – Bankruptcy Courts May Offer Relief For Tariff-Driven Distress