Economy Strengthens as S&P Maintains U.S. Credit Rating Despite Tariff Concerns

Tuesday, 19 August 2025, 17:24

Economy issues are at the forefront as S&P holds the U.S. credit rating steady, citing tariff revenue as a key factor. The agency acknowledges the challenges posed by tax cuts but highlights the resilience of the economy. Tariffs are increasingly important in stabilizing fiscal health, according to S&P's latest assessment.
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Economy Strengthens as S&P Maintains U.S. Credit Rating Despite Tariff Concerns

Tariff Revenue Stabilizes Economy

S&P Global Ratings has reaffirmed its AA+ credit rating for the U.S., noting that new revenue from tariffs will offset the financial impact of the recent tax cuts introduced under Republican policies. This assessment was released late Monday, signifying a stable outlook amidst forecasts of economic challenges.

Analyzing the Impacts of Tariffs

  • The fresh rating arrives following a downgrade from Moody's Ratings, which raised concerns about rising debt due to trade policies.
  • S&P's report emphasized the U.S. economy's notable resilience and the importance of tariff revenue in maintaining fiscal health.
  • Despite facing scrutiny over tax implications, the credit ratings agency remains optimistic about the stability of the economy.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

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