Trump Tariffs Get Approval as S&P Affirms US Credit Rating

Rating firm's analysts say tariff revenue will help soften fiscal blow from tax and spending Bill

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US President Donald Trump's sweeping tariffs have roiled markets, unnerved trade partners and provoked criticism from leading economists. But there is an upside: The tariffs will help the United States maintain its fiscal health, according to S&P Global Ratings.

The credit rating company has affirmed its AA+ long-term rating for the US, in part because it thinks tariff revenues will reduce the fiscal hit of a recent tax and spending Bill. It kept the outlook for the long-term rating stable.

The decision offers a glimmer of good news for Mr. Trump, who has pushed back against arguments that his historic program of tariffs will damage the US economy. Although the S&P analysts did not contradict that view, they stressed that as Mr. Trump embarks on a bold program of tax cuts and spending, tariffs will help soften the blow.

"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," wrote analysts in a note.