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S&P affirms US 'AA+' credit rating, cites tariff revenue
Reuters ^

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 ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: debt; rating; tariffs

1 posted on 08/19/2025 9:25:25 AM PDT by SeekAndFind
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To: SeekAndFind

This is good news.

Ergo, no one replies. Interesting dynamic.


2 posted on 08/19/2025 9:51:59 AM PDT by Antoninus (Republicans are all honorable men.)
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To: SeekAndFind
Good news!
P> But these credit ratings for countries are always suspect to me. At least as long as they don't rate dead beat China as complete junk status for not paying on their old railroad bonds in many decades. China claims that any debt run up by pre-communist China is not theirs to pay. Well if China can wordplay out of paying that debt, then you never know when they'll wordplay out of paying current or future debt.
3 posted on 08/19/2025 9:57:13 AM PDT by Tell It Right (1 Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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To: Antoninus

RE: This is good news.

The USA used to have AAA debt rating. We’re now below that level even with Moody’s.


4 posted on 08/19/2025 12:48:23 PM PDT by SeekAndFind
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To: SaveFerris


"Municipal bonds, Ted. We're talking Double-A rating. Best investment in America."
5 posted on 08/19/2025 12:53:47 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: SeekAndFind

The US lost triple A rating right? I am surprised it didn’t result in an extreme event, like yields sky rocketing.


6 posted on 08/19/2025 2:02:22 PM PDT by Sam Gamgee
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