The US firearms industry is experiencing significant financial distress in 2025, marked by company closures and bankruptcies like SEC Y Firearms and Watchtower Firearms. Key factors contributing to this downturn include slumping sales, economic pressures, expensive lawsuits, operational issues, and a political shift that has cooled consumer demand. New tariffs imposed by the Trump administration on steel and aluminum imports have significantly increased production costs for manufacturers reliant on these materials.
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