S&P holds U.S. credit rating steady, saying tariff revenue will offset weaker finances

Source: CBS News

August 19, 2025 / 1:24 PM EDT


S&P Global Ratings reaffirmed its AA+ credit rating for the U.S., saying that new revenue raised by the Trump administration's tariffs will help offset the tax cuts authorized by the Republicans' One Big Beautiful Bill Act. The credit ratings agency, which issued its new assessment of the nation's fiscal health late Monday, said that it is holding its AA+/A-1+ rating steady, with a stable outlook.

The fresh analysis comes after Moody's Ratings, another large credit ratings agency, downgraded the U.S. in May, highlighting investor concerns about the nation's growing debt and policy uncertainty sparked by President Trump's trade policies. While S&P highlighted a range of economic concerns in its report, including the impact of new tax cuts against a backdrop of already high U.S. debt and deficits, the agency also underscored the resiliency of the nation's economy as well as the new tariff revenue generated by the Trump administration.

"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 analysts wrote in the ratings note.

The report added, "The ratings on the U.S. are based on its wealthy, diversified and resilient economy, with per capita GDP over $89,000 in 2025. Since the pandemic, U.S. growth has far surpassed that of its peers." The White House didn't immediately respond to a request for comment.

Read more: https://www.cbsnews.com/news/sp-credit-rating-aa-us-tariff-revenue-obbba/