A recently released economic report shows further good news for Trump’s tariff policy. S&P Global Ratings analysis indicated that the revenue from Trump’s tariffs would help to offset the economic impact of tax cuts in the recently approved budget legislation. The S&P announced the U.S. will maintain its AA++ credit score, which it has consistently held since 2011.
President Trump emphasized the implementation of new tariff policies throughout the 2024 presidential campaign. Shortly after taking office in January 2025, the Trump administration announced the new tariff policy, noting that the United States had one of the lowest effective tariff rates in the world, including among countries with similar political and economic structures.
As stated by the Trump administration, the goal of imposing tariffs was to counteract unbalanced relationships with foreign trading partners and to grow the U.S. economy in a way that would benefit American workers and manufacturers.
When the tariff plan was introduced, economic analysts expressed concerns and predicted potential declines for the U.S. and the global economy. Trump has recently pushed back against such predictions, including a strong rebuke of a Goldman Sachs analysis that tariffs would harm the U.S. economy.
In his response, Trump stressed that consumers have not been the ones to bear the costs of tariffs through increased prices. Trump’s claim was bolstered by the fact that inflation has remained steady over the summer despite predicted increases.
The report also addressed the federal deficit, with projections showing a decrease throughout the remainder of Trump’s term in office. According to the S&P analysis, the deficit will average 6% from 2025 to 2028, which represents a decrease from the 7.5% deficit reported last year.
Treasury Secretary Scott Bessent has predicted tariff revenue for 2025 will 1% of U.S. GDP. Bessent’s prediction is backed by findings from the Committee for a Responsible Federal Budget, which projects tariff revenue will reach $40 to $50 billion per month, representing an estimated 1.5% of total GDP.