The recent wave of Immigration and Customs Enforcement (ICE) raids has sent shockwaves through communities across the United States, driving many shoppers into hiding and leaving once-bustling business districts eerily quiet. This fear has drastically impacted local businesses, as people avoid supermarkets, malls, and restaurants.
Big brands have also reported a sharp decline in sales due to the loss of foot traffic. The fear of ICE is higher than ever before, and the economy is feeling the impact hard.
Fear on the Streets
The Latin community is riddled with fear of stepping foot outside due to the constant presence of ICE. Unverified alerts and rumors of ICE sightings spread rapidly through social media and neighborhood apps, often causing panic and disruption even when no agents are present.
“It’s very slow… a lot of people are afraid. Very, very slow,” said Abe, a local business owner. “They’re afraid to come into the store, afraid to go to Home Depot. I’m losing customers. I’m losing my own installer because they’re afraid to go to certain areas and get caught.”
Billions at Stake
In immigrant-rich neighborhoods like downtown Los Angeles, once-busy markets and shopping districts have seen business collapse almost overnight, with vendors reporting sales so low they struggle to pay rent. Experts estimate that undocumented immigrants contribute nearly $300 billion in annual spending power, and their absence could shrink the national GDP by as much as 5.7%, or $1.6 trillion, in a single year.
“Some of the workers are selling their cars, their tools, their furniture, just to cash out before they get caught and lose everything,” said Abe. Inside his store, he gestures toward the empty showroom. “As you can see, it’s empty in here. Nobody’s here. People don’t want to spend money. And the Latino community, they’re very good spenders, but nobody’s out shopping.”
Small Businesses on the Brink
In cities like Santa Ana and Los Angeles, business owners report dramatic drops in sales, some as steep as 90%, as fearful residents stay home, cancel reservations, and avoid public spaces altogether. The financial burden of replacing lost workers is steep, averaging nearly $12,000 per employee, while the emotional toll on remaining staff, who face increased workloads and uncertainty, continues to mount.
“Everything that’s going on right now, outside, it does scare a lot of our clients, and we have been like calling them, texting them, because we do have a clientele that comes daily, so we get to know them,” said Jazmine Ruiz, the owner of Orale Nutrition on Main Street. “So we’re like, ‘Don’t worry if you need something from the shop, we could actually deliver to you guys.”
Big Brands Feel the Pinch
Local businesses are not the only ones feeling the pressure of a decreased Latin community presence; big brands are being hit just as hard. Companies like Coca-Cola have reported a noticeable drop in sales, with North American volume falling 3% in the first quarter of 2025. Even on-premise sales at restaurants and social gatherings have declined, with surveys showing that 75% of Hispanic consumers are cutting back on dining out and attending events.
“In addition to challenges with severe weather and calendar shift, volume was impacted by weakening consumer sentiment as the quarter progressed, particularly among Hispanic consumers,” said James Quincey, Coca-Cola’s CEO.
Corporate America’s Muted Response
Corporate America has decided to remain silent as these ICE raids become more common and drive fear into the surrounding communities. As protests erupted outside major retailers like Home Depot in Los Angeles and ride-hailing services like Waymo suspended operations due to safety concerns, corporate leaders have mostly declined to comment or offer public support to affected employees and customers.
This strategic silence contrasts the more vocal advocacy in past years, with many executives now weighing the risks of engaging in politically charged debates. “What is happening now is terrible, unprecedented, and a manufactured crisis that is causing fear throughout the community,” said Jose Osorio, Immigration attorney.
Rumors, Misinformation, and Boycotts
Rumors can spread like wildfire and strike fear into the hearts of locals among the recent ICE raids. False reports of raids at schools, hospitals, and local businesses have triggered panic, leading families to avoid public spaces and keep children home from school—even when no enforcement action has occurred.
Social networks have become DIY alert systems, with community members and advocacy groups sharing real-time updates about ICE activity. Still, their alerts aren’t always verified and can quickly go viral.
Protests and Public Backlash
The aggressive ICE raids have ignited a powerful wave of protests and public backlash in cities across the United States. On June 6, 2025, hundreds took to the streets following high-profile raids in the city’s Fashion District and other locations, condemning the actions as cruel and unnecessary. Scenes of protest, graffiti, and clashes with police quickly spread, inspiring solidarity marches in cities like Chicago, New York, and Dallas.
“Our community is under attack and has been terrorized,” said Angelica Salas, executive director of the Coalition for Humane Immigrant Rights. “These are workers, these are fathers, these are mothers.”
Workforce Disruption and Labor Shortages
The intensification of ICE raids is causing profound disruptions across the American workforce as people are too scared to leave their homes. In California, immigrants make up a substantial portion of the workforce: nearly one-third in restaurants and warehouses, 40% in home healthcare and child care, and about half in trucking and lodging businesses.
“Immigrants have high labor force participation rates, especially immigrant men. They tend to be higher than the U.S.-born population.” said Julia Gelatt, associate director of the U.S. Immigration Policy Program. “We know that immigrants tend to move where there are jobs and they tend to move where they have social networks.”
The Long Road Ahead
As ICE raids continue, the economic and social wounds deepen. Businesses, big and small, are grappling to find their feet with their loss of revenue and staff due to fear of ICE raids. As policymakers debate the future of immigration enforcement, the stakes remain high: the choices made now will shape the economic and social fabric of the nation for years to come.
Discover more DIY hacks and style inspo- Follow us to keep the glow-up coming to your feed!
Love content like this? Tap Follow at the top of the page to stay in the loop with the latest beauty trends, DIY tips, and style inspo. Don’t forget to share your thoughts in the comments — we love hearing from you!