The U.S. economy experienced a 3.8% GDP growth in Q2 2025, significantly driven by $350 billion in AI investments from major tech companies, contributing 1.1% to the growth. However, tariffs imposed under Trump's policies are increasing import costs, pressuring small businesses to adjust product offerings to maintain pricing. Consumer confidence has plummeted to a 28-year low, with 57% of Americans anticipating economic decline. Younger generations are notably reducing holiday spending by up to 34%, reflecting broader economic concerns.