Trump tariff revenue expected to offset tax bill impact

S&P Global President Donald Trump’s extensive tariff policies, “weaker” income in general Trump’s recently entered into force “expected to balancing the” meaningful “federal government revenue of the” meaningful “federal government revenue in general, he said.

S&P Global stated this view on Monday AA+ Protected its degree A-1+ degree on long-term US dominant debt and “short-term unwanted dominant credit”.

However, if the company already increases high deficits, we can reduce the rating for the next two to three years, reflecting the inability to include increased expenditures or not to manage income results from changes in tax code. “

He also warned that ratings may be under pressure if the ratings are focused on the power of American institutions and the effectiveness of the Federal Reserve’s long -term policy construction or independence “.

“This can endanger the status of the dollar as the world’s leading reserve currency-church credit force,” S&P Global said.

After re -winning the White House in January, Trump introduced extensive and usually high tariffs for imports from other countries.

Trump alleged in July “BIG BEAUTIFUL INVOICE “ It was a law. Legislation, while reducing tax rates, brings deductions on federal government expenditures.

On July 21st Congress Budget Office It is estimated that the law will result in a clear increase of $ 3.4 trillion of federal budget deficit from 2025 to 2034.

“This increase is expected to be due to a decrease in direct spending of $ 1.1 trillion and a decrease of $ 4.5 trillion,” CBO said. He said.

On Monday, S&P Global said, “In the midst of the increase in effective tariff rates, we expect significant tariff income to balance weaker financial consequences that may be associated with the latest financial legislation, which includes both deductions and increases in taxes and expenditures.” He said.

Last week, the Treasury’s Ministry of Treasury said Trump’s tariff policy was an increase of about $ 21 billion in US customs duties collections. However, according to the department, the federal budget deficit grew about 20% for the same month.

However, S&P Global, “the US economy is stable by reflecting our expectations of flexibility; reliable, effective monetary policy execution; the increase in net general government debt and the increase in $ 5 trillion in the debt ceiling high, but not elevated financial deficiencies,” he said.

“Although the stable appearance will not heal significantly, the stable appearance shows our expectations that we do not reflect a permanent deterioration over the next few years.” He said.

“This includes our opinion that the ongoing changes in internal and international policies will not focus on the durability and diversity of the US economy.” He said.

He continued: “And in turn, wide income floating force, including solid tariff income, will balance any financial slip from tax cuts and expenditure increases.”