S&P Affirms US Credit Rating at 'AA+', Cites Tariff Revenue

S&P Global affirmed its "AA+" credit rating on the U.S., saying the revenue from President Donald Trump's tariffs on other countries will offset the fiscal hit from his recent spending bill.

S&P Global is keeping the rating between "AA+/A-1+," its second- and third-highest rating.

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 took the U.S. borrowing limit to $41 trillion, is estimated to add $5 trillion to the U.S. debt ceiling. According to the Federal Reserve Bank of St. Louis, the U.S. deficit is now 6.2% of gross domestic product.

"In our view, the fiscal profile remains the key weakness for the U.S. sovereign ratings," S&P said Monday. However, it added, "At this time, it appears that meaningful tariff revenue has the potential to offset the deficit-raising aspects of the recent budget legislation."

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The U.S. took in nearly $50 billion in tariff revenues in the second quarter, the first quarter that the tariffs became effective.

S&P said the outlook remains stable on the country's rating, and it called the nation's monetary policy "credible" and "effective."

The U.S. economy, the influential agency added, is "resilient" and "diverse."

"Broad revenue buoyancy, including robust tariff income, will offset any fiscal slippage from tax cuts and spending increases," S&P said.

Despite the U.S. debt ceiling's divisiveness in the nation, S&P foresees that it "will continue to be resolved in a timely fashion considering the severe consequences of not doing so on financial markets and on the economy."

In May, rival Moody's cut the U.S. from its highest credit rating over fears of rising government debt and a widening deficit.

On May 16, the credit ratings agency downgraded the United States rating to "Aa1" from "Aaa," due to the nation’s debt, now at $37 trillion.

The United States’ rising debt and interest "are significantly higher than similarly rated sovereigns," Moody’s said.