S&P Global on Monday affirmed its “AA+” credit rating on the U.S., saying the revenue from President Donald Trump’s tariffs will offset the fiscal hit from his massive tax-cut and spending bill.

“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,” S&P said in a statement.

“At this time, it appears that meaningful tariff revenue has the potential to offset the deficit-raising aspects of the recent budget legislation.”

The U.S. reported a $21 billion jump in customs duty collections from Trump’s tariffs in July, but the government budget deficit still grew nearly 20% in the same month to $291 billion. Interest on the public debt also continued to grow, hitting $1.013 trillion in the first 10 months of the fiscal year, an increase of 6%, or $57 billion, over the prior-year period due to slightly higher interest rates and increased debt levels.

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