Trump’s Immigration Policy Hurts Key Sectors of the U.S. Economy

US Workers: Raids impact key economic sectors

Layoffs increase and industries stall

Business leaders call for immigration reform

President Donald Trump’s immigration policy is beginning to strongly impact various economic sectors across the United States.

Empty farms, halted construction projects, and mass layoffs are among the consequences reported by business owners and activists, who claim that federal raids and threats are destabilizing core industries such as agriculture, food production, tourism, and construction.

US workers are the economic engine

“ICE doesn’t know how a farm operates”

The immigration policy pushed by the Trump administration is deeply affecting the workforce in sectors historically dominated by migrant workers, both documented and undocumented.

“To me, it’s clear that those pushing these raids on farms and dairies have no idea how a farm operates,” said Matt Teagarden, Executive Director of the Kansas Livestock Association. “Losing more than half the workforce in a matter of hours—there’s no way to keep a business running.”

Business leaders agree that even workers with legal permits prefer to stay hidden out of fear of being associated with undocumented family members.

Jim Tobin, president of the National Association of Home Builders, warned that worker absences are delaying projects and driving up costs nationwide.

“We either import workers or we import food”

The consequences of Trump’s immigration policy go beyond internal business operations. A decrease in agricultural production, for example, could trigger price increases for consumers.

“We have a choice here: we either use imported workers or we import food. We need significant (immigration) reform to fix the problems with our labor force,” Teagarden emphasized.

In Elgin, Illinois, a factory laid off 300 workers after an ICE phone call, activists reported.

“This is a terrible situation—they’re exploiting fear of Trump to fire parents with more than 20 years of experience in these plants,” said Cristóbal Cavazos of the Casa DuPage Workers Center.

Cavazos also described these actions as “a true weapon of mass destruction,” directly targeting those who were essential during the COVID-19 pandemic.

“If workers grow, the economy grows”

Immigration uncertainty caused by Trump’s policy also has macroeconomic implications. Stuart Anderson of the National Foundation for American Policy summed it up: “If you want a growing economy, you need a growing labor force.”

A study by the Federal Reserve Bank of Dallas projects that these immigration restrictions will reduce economic growth by nearly one percentage point this year.

In 2025, growth is expected to reach only 1.5%, far below the 3% of previous years.

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The US economy’s reliance on migrant labor is undeniable.

According to the American Immigration Council, in 2022, 14% of construction workers were undocumented, along with 15% in agriculture and 7.6% in tourism and hospitality.

“If they don’t show up for work, production in those industries drops significantly, and we see real damage in those industrial sectors,” explained Robert Bruno, professor at the University of Illinois. “A lot of income and GDP is lost, and there are ripple effects from the absence of these workers.”

US workers face layoffs at major corporations

Multinational corporations like Disney, Walmart, Amazon, and Nestlé have also begun cutting immigrant staff under federal pressure.

In Illinois, where suburbs like Bensenville and Schaumburg have high concentrations of undocumented workers, Nestlé laid off more than 600 people without compensation, despite years of steady service.

Trump’s immigration policy is not only causing fear and uncertainty in migrant communities, but is also leaving visible marks on the country’s productivity, prices, and economic growth.

Business leaders and experts agree: without serious and realistic immigration reform, the U.S. economy could face prolonged stagnation.

Do you believe immigration raids are hurting the economy more than they’re strengthening labor law enforcement?

SOURCE: EFE