The June 2025 surge in federal immigration enforcement, and the later deployment of the National Guard to Los Angeles to quell protests, caused an “immediate economic shock,” especially in enforcement areas, with continued impact one year later. The immigration raids created a “chilling effect,” driving away customers from businesses which anchor many of the commercial corridors in Los Angeles County. In just the first two weeks of the crackdown, businesses lost an estimated $3.16 million in sales, and data on foot traffic shows 46,000 fewer customer visits to official brick & mortar businesses. Not included in the report is the impact on street vendors, food trucks, or home-based businesses which were very commonly found operating in these corridors. Some 59% of these formal businesses reported that sales fell 50% or more, 68% were forced to close temporarily, and 51% had staff who missed work out of fear. These were some of the findings of a July 22 report, The Cost of Fear: the Impacts of Immigration Enforcement on Small Businesses and Latino Entrepreneurs in LA County produced by the UCLA’s Latino Policy and Politics Institute and Inclusive Action for the City, a nonprofit.
One year later the financial stress continues. The report states that 95% of Latino business owners are “left with depleted savings, accumulated debt and abandoned plans for growth and investment.” Over 75% of business owners report that the raids affected their physical health including insomnia, panic attacks, and gastrointestinal disorders. The study continues, “Many of these businesses remain in debt, barely breaking even and struggling to stay open. These consequences extend far beyond commercial corridors. As immigration enforcement continues, it endangers the health, well being and safety of entire communities.”