S&P Global confirmed the US credit rating at ‘AA+’. The agency stated that revenues from President Donald Trump’s tariffs will offset the burden on the budget from the recent tax cuts and spending package.
With the “One Big Beautiful Bill Act” which came into effect in July, Trump provided new tax cuts and made the 2017 cuts permanent. During this process, US customs revenues increased by $21 billion; However, the budget deficit increased by 20% to $291 billion.
The global trade war that Trump launched since his return to office began with a 10% base tariff on all imports and was expanded with additional taxes on some products. Nevertheless, S&P maintained its outlook as “stable” and predicted that the Fed could manage financial risks while curbing inflation. The agency forecasts that the budget deficit will fall to an average of 6% of GDP between 2025-2028, a significant decrease from the 9.8% level in 2020-2023. Meanwhile, rival Moody’s downgraded the US rating in May, citing increasing debt burden.
