Trump's migration policy hits the US economy: fear paralyzes workers!

Trump's migration policy hits the US economy: fear paralyzes workers!

What's going on in the USA? President Donald Trump's aggressive migration policy is currently unsettling millions of people who live in the country without valid residence status. In recent weeks, the immigration agency ICE has caused a stir across the country with raids and deportations. Many employers, particularly in the construction, agriculture, healthcare, catering and hotel industries, are preparing for unannounced deployments and fear that immigrants will no longer show up for work for fear of raids. According to a report by the Schwäbische Post, around 11 million illegal immigrants in the USA are affected by these measures.

The effects are already noticeable: companies are sometimes reporting declines in sales of up to 50%. In certain sectors, migrants make up a significant proportion of the workforce: 28% in healthcare, 44% in manufacturing and 40% in construction. This raises serious concerns that aggressive immigration policies are causing lasting damage to the U.S. economy. A recent study by the IfW in Kiel confirmed that populist governments could cause long-term economic damage.

Protests and political measures

In Los Angeles, protests against Trump's migration policy have intensified. To stop resistance to ICE raids, Trump even mobilized soldiers. Insecurity among undocumented immigrants is growing as many limit their spending for fear of arrests and deportations. Increasing raids on construction sites are fueling fears and causing many immigrants to no longer take up their jobs. According to a report by Die Zeit, approximately 31 million immigrants work in the United States, accounting for 19.2% of the total labor force, of which approximately 8.3 million are unauthorized immigrants.

Trump has already announced that he would suspend raids on certain sectors after reports of the negative impact on the construction and hotel industries. Despite these admissions, general uncertainty remains. Critics fear that a decline in immigration could worsen skills shortages in key industries. In April 2023, only 7,600 illegal entries were detected, a decrease of over 90% compared to the previous year.

Impact on the economy

Another problem arises from rising prices and falling purchasing power. Latinos and Hispanics are increasingly restricting their spending for fear of deportation. This demographic contributes significantly to the U.S. economy, generating approximately $97 billion in tax revenue in 2022. A further decline in immigration could also threaten the economy, as immigrants are essential workers.

The economic consequences cannot be ignored for the Republicans either. They blame illegal immigration for problems such as rising crime and high rents. Trump himself sees immigration as a reason for depressed wages due to increased competition.

In summary: Trump's migration policy is already having a massive impact on the American economy and society. Uncertainty remains high and the long-term consequences are difficult to estimate. Political disputes are inevitable as local authorities and politicians in Democratic-led states want to take action against migration policy.

For anyone who would like to delve deeper into the subject, we recommend the following articles: Swabian Post, Time, taz.