Los Angeles businesses report significant losses as immigration raids prompt many workers and customers to stay home, raising concerns over broader economic effects.

At Los Angeles' central fresh produce market, normally busy with suppliers and small businesses, activity has slowed significantly following a series of immigration raids by U.S. Immigration and Customs Enforcement (ICE).

Juan Ibarra, who operates a fruit and vegetable outlet, reported that many of his regular customers — including street vendors and restaurant workers — have not returned since the enforcement actions began. “It’s almost COVID-like. People are scared. We can only last so long like this,” Ibarra said.

The decline in foot traffic has resulted in significant financial losses. Ibarra, who typically earns about $2,000 a day, now reports daily revenues of around $300. He has also been forced to dispose of unsold produce due to decreased demand.

Other business owners in Los Angeles and across California have experienced similar challenges. According to the American Immigration Council, approximately one-third of California’s workforce is made up of immigrants, while 40% of entrepreneurs in the state are foreign-born.

The Trump administration, in response to concerns about economic consequences, has recently instructed ICE to pause enforcement actions targeting farms, restaurants, and hotels. However, some business owners report that the damage has already been done.

Pedro Jimenez, who has run a Mexican restaurant in Los Angeles for 24 years, said weekly revenues have fallen by approximately $7,000. “This is really hurting everybody’s business,” he said.

Protests have also taken place in response to the enforcement actions. In reaction, National Guard troops and U.S. Marines have been deployed to Los Angeles. A White House spokesperson stated that protests were contributing to business disruptions, while local officials expressed concerns about the federal response.

Andrew Selee, president of the Migration Policy Institute, noted that the recent focus on workplace raids marks a shift from earlier policies that primarily targeted individuals with criminal records. “The more immigration enforcement is broad rather than targeted, the more it disrupts the American economy,” he said.

Some workers have chosen to stay home to avoid possible encounters with enforcement officials. Luis, a Guatemalan street vendor, said he has been limiting his activities. “I have to work to survive, but the rest of the time I stay inside,” he said.

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