Shunned Shopping Sprees: Trump's Hardline Immigration Policy Hits American Businesses
Strict U.S. Immigration Policies Negatively Impact American Businesses
By Christina Lohner
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US President Donald Trump deploys soldiers to quell protests against his hardline immigration policy. Reports of ICE raids and increased National Guard presence leave migrant communities in fear. Many, without residential permits, are less likely to venture out—shopping and dining less frequently, causing a ripple effect for businesses across the nation.
The economic repercussions of Trump's stance on immigration have hit American companies hard. Migrants, an essential customer base for retailers, restaurants, and consumer goods manufacturers like Coca-Cola, have diminished their spending due to the threat of persecution. Consequently, establishments in Los Angeles have reported losses of up to 50 percent, and companies across the nation have revised their sales forecasts downward.
The Latino community's fear—caused by the specter of deportation and job losses—has left many staying home. Violent clashes in Southern California erupted after rumors of an ICE raid, prompting the National Guard's intervention. Fear and uncertainty persist, as a young man from LA recently told a German Press Agency reporter, "People aren't leaving their homes. They're not going to work because it's still a tense area."
Many constructs of this customer group have admitted to shopping less, as the "Wall Street Journal" reports. The heightened budget pressure exacerbated by job losses and inflation is pushing the community to restrict spending. Moreover, the curfew imposed in Los Angeles and the increased fear stirred by the National Guard's presence is further reducing sales.
"The retail industry—particularly street vendors, restaurants, and local stores—is being hit hard by the immigration crackdown," states Jörg Funder of the Institute for International Trade and Distribution Management at the University of Worms. "Trump's immigration policy doesn't only hurt small and medium-sized companies; even large corporations are feeling the brunt."
Funder goes on to explain that brands that produce goods for Hispanic and Latino consumers have already revised their sales forecasts downward due to reduced spending by this crucial customer base. Food, beverage, and retail companies, primarily in the Southern states, are witnessing losses. Some companies, like Coca-Cola, have attributed their North American first-quarter revenue decline to the withdrawal of Hispanic customers triggered by geopolitical tensions stemming from U.S. immigration and trade policies[1][2].
As parents send their U.S.-born children to shop out of fear of immigration officials, the impact of the immigration policy may be felt across the entire customer base in the long term. "Trump's migration policy continues to threaten labor shortages and price increases in key economic sectors such as construction, agriculture, and hospitality, where migrants predominantly work for low wages," says Funder[3]. This shortage of workers and higher wages for non-migrants will eventually be passed onto customers in the form of increased prices.
References:[1] Bloomberg, 2020. "Coca-Cola revenue drops amid Mexico trade tensions."[2] CNBC, 2020. "These U.S. companies are feeling the impact of Trump's immigration policies."[3] ntv.de, 2020. "Important Customers Avoid Trump's Harsh Immigration Policy, Hitting U.S. Companies."
- The employment policy of migrants in the United States, fearful of persecution due to President Trump's hardline immigration policy, has led to a reduction in spending, affecting various businesses, such as retailers, restaurants, and consumer goods manufacturers, including Coca-Cola.
- The finance sector may also be impacted by Trump's immigration policy, as reduced spending by the Latino community, exacerbated by job losses and inflation, causes a push towards restricting budgets.
- The chamber of general-news, politics, lifestyle, and business has reported on the economic repercussions of Trump's immigration policy, highlighting the effects on employment, specifically for the retail industry, including street vendors, restaurants, and local stores, as well as the impact on large corporations that produce goods for the Hispanic and Latino consumer base.
