Trump’s tariffs to offset fiscal impact of tax cuts says S&P and affirms AA+ rating

Published 19/08/2025, 10:38
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Investing.com -- S&P Global affirmed its ’AA+’ credit rating on the United States on Monday, stating that revenue generated from President Donald Trump’s tariffs will counterbalance the fiscal impact of his recent tax-cut and spending legislation.

The rating agency’s decision comes after Trump signed the "One Big Beautiful Bill Act" into law in July, which made his 2017 tax cuts permanent while introducing new tax breaks.

"Amid the rise in effective tariff rates, we expect meaningful tariff revenue to generally offset weaker fiscal outcomes that might otherwise be associated with the recent fiscal legislation, which contains both cuts and increases in tax and spending," S&P Global said in a statement.

The agency added that "at this time, it appears that meaningful tariff revenue has the potential to offset the deficit-raising aspects of the recent budget legislation."

The affirmation of the ’AA+’ rating suggests S&P Global maintains confidence in the U.S. government’s ability to meet its financial obligations despite the fiscal implications of the new legislation.

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