The U.S. economy is keeping its AA++ S&P Global Ratings, with the analytic firm finding President Trump’s tariffs will help soften the economic impact of his tax cuts.
The U.S. economy has had that score since 2011, when Standard and Poor’s downgraded the world’s largest economy from AAA, Bloomberg News reported Tuesday.
“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,” analysts wrote in a report.
When Trump began rolling out his tariff-increase plan in February on U.S. trading partners, many economists predicted the U.S. economy and global financial markets would tumble.
S&P also projects the country’s fiscal deficit won’t deteriorate over the next several years, but it won’t meaningfully improve either. The firm expects net general government debt to surpass 100% of U.S. GDP over the next three years, but it believes the general government deficit will average 6% from 2025 to 2028, down from 7.5% last year.
Treasury Secretary Scott Bessent has said tariff revenues for this year could be “well in excess of 1% of GDP,” revising his previous estimate of $300 billion. The Congressional Budget Office estimates the recently passed budget law will add $3.4 trillion to the deficit over the next decade.
Natalia Mittelstadt graduated from Regent University with Bachelor of Arts degrees in Communication Studies and Government.
Reprinted with permission from Just The News by Natalia Mittelstadt.
The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.
The deficit is still too high because millions more illegals have to leave.
Perhaps situation will improve when we stop supporting illegals, when we stop supporting that which is unsupportable and giving money away to every hell hole on this earth without any accountability, that includes all the “aid” agencies and organizations which are only aiding themselves. Put the taxpayer first and see what happens. There is a deficit because we are spending what we can’t afford to spend on that which does not work. or what we don’t really need . Waste, unaccountability and open theft , years of failed management, we are dealing with results of all that.
Government spending is still too high and tariffs are taxes being paid by Americans thru price increases!
TRUMP WAS RIGHT AGAIN (LIKE ALWAYS). THIS NEWS IS GREAT FOR THREE REASIONS:.
SHAA! WAY!!
Thanks for allowing members to post specific pieces.