The post Trump’s AI-fueled boom hides strain on small businesses as tariffs and costs rise appeared on BitcoinEthereumNews.com.

The $350 billion AI splurge by America’s biggest tech companies is giving Donald Trump’s economy a shiny look, but beneath the surface, small businesses and workers are dealing with higher prices, weaker spending, and fewer jobs. The boom that started in Silicon Valley is helping Wall Street hit record highs, yet in places like Birmingham, Alabama, flower shop owners like Cameron Pappas are cutting stems just to keep customers from walking away. The story, reported by CNBC, shows a country where trillion-dollar tech firms are fueling growth numbers while the rest of the economy tries to breathe. Cameron’s Norton’s Florist, a family business founded in 1921, made $4 million last year selling flowers and gifts. But with Trump’s sweeping tariffs raising import costs, Cameron said he’s been forced to “keep an eagle eye on all of our costs.” He explained that instead of raising prices, he’s trimming his flower arrangements. “If a bouquet has 25 stems in it, if you reduce that by three to four stems, then you’re able to keep the price the same,” he said. “It’s really forced us to focus on that and to make sure that we’re pricing things the best that we possibly can.” AI spending lifts the markets but not everyone else The AI mania has become a statistical miracle. A JPMorgan Chase report showed that in the first half of 2025, AI-related investments alone added 1.1% to U.S. GDP growth, beating out consumer spending as the country’s main growth driver. The Commerce Department said GDP grew 3.8% in the second quarter after falling 0.5% in the first. Yet in real terms, manufacturing has been shrinking for seven straight months, and construction is flat because of high interest rates and the rising cost of materials. Cushman & Wakefield expects total construction costs to…

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Filed under: News - @ October 25, 2025 5:26 pm