Trump's migration policy: US economy in crisis! Immigrants are missing!

Trump's migration policy: US economy in crisis! Immigrants are missing!

Donald Trump's migration policies have led to significant economic challenges in the United States in recent years, particularly in industries that rely heavily on migrants. Business concerns are currently increasing as illegal immigrants face arrests by immigration authorities across the country. According to the latest reports from Mercury ICE officers have begun picking up immigrants directly from their workplaces.

The construction, agriculture, health and hospitality sectors are particularly affected by the raids. Companies are preparing for unannounced raids and need to develop new policies for dealing with these incidents. Fear of deportation has caused many immigrants to stop coming to work.

Impact on the economy

In the US, migrants make up 28% of the workforce in healthcare, 44% in manufacturing and 40% in construction. It is estimated that there are approximately 11 million undocumented immigrants in the United States, with many coming from Mexico and Central and South America. This group contributes to US tax revenue and is estimated to be around $97 billion. It makes up about 5% of the total US workforce.

Growing uncertainty has led to a decline in spending among Latinos and Hispanics, who are rethinking their spending habits due to fear of deportation and rising prices. Some companies even report declines in sales of up to 50%. This is reflected in the fragile economic situation, which is further exacerbated by Trump's aggressive immigration policies.

Political reactions and challenges

Protests against Trump's migration policies are underway in Los Angeles, triggered by increasing raids by ICE. In this context, Trump has even mobilized soldiers to respond to protests. Despite the economic damage caused by his policies, Trump remains committed to closing the border and cracking down on illegal immigration, even as a growing number of voices warn that a decline in immigration could be more dangerous to the U.S. economy in the long term than tariffs, as the head of monetary research at Deutsche Bank noted.

A study by the IfW in Kiel comes to the conclusion that populist measures can cause economic damage. Tariffs against Canada, Mexico and China led to modest economic growth of just 0.3% in the first quarter of 2025. Trump has now begun to review his migration policy, recognizing that it is damaging the US economy.

Economic forecasts show that increasing net immigration between 2024 and 2034 could boost economic growth by 0.2 percentage points annually. Still, the long-term impact of current migration policies and the possibility of skills shortages in certain industries remain difficult to predict, as only about 7,600 illegal entries have been detected at the U.S. external borders, a decline of over 90% compared to last year.

The coming months are likely to be crucial in determining how the US economy responds to the challenges posed by Trump's migration policies. The need to balance legal requirements with economic needs is clear, and pressure may increase on the government to adopt a more balanced migration policy.