S&P Affirms U.S. 'AA+' Rating Amid Tariff Revenue and Growing Debt
S&P Global has upheld the 'AA+' credit rating for the U.S., citing revenue from tariffs introduced under President Trump as a counterbalance to the fiscal impact of recent tax cuts. While tariffs help offset the deficit, the national debt continues to grow, raising concerns about the future fiscal outlook.
S&P Global confirmed the U.S.'s 'AA+' credit rating, supported by tariff revenue from President Trump's policies. This revenue is mitigating the fiscal impact of tax cuts, despite a growing budget deficit.
Trump's tariffs have increased U.S. customs duty collections significantly. However, interest on national debt keeps rising, reaching $1.013 trillion due to higher interest rates and debt levels. The Federal Reserve's future handling of fiscal challenges may impact this rating further.
Concern over the national debt, which exceeded $37 trillion, remains high. Credit agencies like Moody's have also downgraded U.S. ratings recently. Still, potential for economic growth and fiscal adjustments could improve the U.S.'s fiscal profile, maintaining or even boosting its credit rating.
(With inputs from agencies.)
Google News