A massive wave of investment in artificial intelligence (AI) is masking significant economic damage caused by Donald Trump‘s tariffs, creating a deceptive picture of the U.S. economy's health, according to investor Steve Eisman and CNBC Senior Economics Reporter Steve Liesman.

Unpacking The “K-Shaped” Economy

Speaking on “The Real Eisman Playbook” podcast, the two experts warned that while the AI sector booms, numerous other industries are quietly being squeezed, with the full negative impact yet to materialize.

The discussion highlighted a “K-shaped” economic reality where the fervor around AI props up growth figures while the rest of the economy stagnates or declines under the weight of trade duties.

Liesman argued that the immense stock market gains in AI have diverted attention from the widespread negative effects of the tariffs.

‘Papered Over By AI’: Industries Being Crushed By Tariffs

"Plenty of industries… have been hit by these tariffs and their stocks have fallen tremendously, and it’s been papered over by what’s ...