Posted on 08/19/2025 9:25:25 AM PDT by SeekAndFind
S&P Global on Monday affirmed its 'AA+' credit rating on the U.S., saying the revenue from President Donald Trump's tariffs will offset the fiscal hit from his recent tax-cut and spending bill.
Trump signed the massive package of tax-cut and spending bill, dubbed the 'One Big Beautiful Bill Act', into law in July. The bill, which delivered new tax breaks, also made Trump's 2017 tax cuts permanent.
"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 said in a statement.
"At this time, it appears that meaningful tariff revenue has the potential to offset the deficit-raising aspects of the recent budget legislation."
The U.S. reported a $21 billion jump in customs duty collections from Trump's tariffs in July but the government budget deficit still grew nearly 20% in the same month to $291 billion.
Since returning to power in January this year, Trump has launched a global trade war with a range of tariffs that have targeted individual products and countries. The president has set a baseline tariff of 10% on all imports to the United States, as well as additional duties on certain products or countries.
(Excerpt) Read more at reuters.com ...
This is good news.
Ergo, no one replies. Interesting dynamic.
RE: This is good news.
The USA used to have AAA debt rating. We’re now below that level even with Moody’s.
The US lost triple A rating right? I am surprised it didn’t result in an extreme event, like yields sky rocketing.
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