S&P Maintains US AA+ Rating, Cites Tariff Revenue Offset

S&P Maintains US AA+ Rating, Cites Tariff Revenue Offset
Above: Customers shop at a Home Depot store on Aug.19, 2025, in Chicago, Illinois. Image copyright: Scott Olson/Getty Images

The Spin

Pro-Trump narrative

Tariffs are proving their worth as a fiscal tool, generating substantial revenue that validates Trump's trade strategy. The $28 billion collected in July alone demonstrates how import duties can meaningfully offset tax cuts while strengthening America's fiscal position. This approach successfully balances pro-growth tax policy with responsible revenue generation.

Anti-Trump narrative

Tariffs function as a hidden tax on American consumers and businesses, with economists estimating an average cost of $2,700 per taxpayer in 2026. The revenue boost comes at the expense of economic efficiency and consumer purchasing power, creating uncertainty that has already weakened job growth to just 73,000 positions in July.

Metaculus Prediction



The Controversies



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© 2025 Improve the News Foundation. All rights reserved.Version 6.14.0

© 2025 Improve the News Foundation.

All rights reserved.

Version 6.14.0