S&P Confirms U.S. Credit Rating at ‘AA+’, with Stable Outlook

The rating agency S&P Global on Monday confirmed the U.S. credit rating at ‘AA+’ and its stable outlook, stating that customs revenues introduced by President Donald Trump will neutralize the adverse fiscal consequences of his recent tax cuts and public spending legislation.

Trump signed a law in July that included a large package of tax cuts and reductions in public spending.

– Due to the increase in effective tariff rates, we expect that significant customs revenues will generally offset weaker fiscal results that could otherwise be associated with the recently introduced fiscal legislation, which includes both tax cuts and increases in spending – S&P stated in a press release.

It adds that significant customs revenues currently appear to have the potential to neutralize the outlook for an increase in the deficit associated with the recently introduced fiscal legislation.

Although the U.S. reported a jump in customs revenues of $21 billion in July due to Trump’s tariffs, the U.S. budget deficit still grew that month, rising by nearly 20 percent to $291 billion.

Since taking office in January of this year, Trump has initiated a global trade war with a wave of tariffs aimed at individual products and countries. He imposed a basic tariff rate of 10 percent on all imports into the United States, as well as additional tariffs on certain products or countries, Reuters reminds us.

S&P announced that the outlook for the U.S. credit rating remains stable.

The rating agency expects that the U.S. central bank, which Trump often criticizes for not quickly lowering interest rates, will face challenges in reducing domestic inflation and addressing vulnerabilities in the financial market.

According to S&P projections, the U.S. budget deficit from 2025 to 2028 is expected to average six percent of GDP, lower than 7.5 percent in 2024 and an average of 9.8 percent of GDP from 2020 to 2023.

The rating agency Moody’s downgraded the U.S. credit rating in May, citing the increasing debt of the world’s largest economy as the reason.