Some CEOs say ICE’s crackdown on immigration is “far worse” for businesses than tariffs

While we all wait to see what’s next Definitionsthe closeGaza cease-fireWhat’s more, let’s consider the business impact of a policy that remains unchanged: the immigration crackdown. Deemed an “essential” service, Immigration and Customs Enforcement (ICE) has been largely unaffected by the shutdown and deportations are unlikely to stop anytime soon. Last week, several CEOs privately shared the impact they’re already seeing in their businesses.

Fewer clients. From the travel company that told me an immigration crackdown is “much worse” for its business than tariffs to a manufacturer that said sales of its products have dropped by double digits in some Southern states, anxiety over immigration enforcement is causing some people to stay away or stay home. South Korea LG Other foreign companies have placed restrictions on business travel to the United States after workers on temporary visas were detained earlier this year. The number of international students arriving in the U.S. in August was down 19% compared to last year, meaning billions of dollars less in spending.

Less productivity. This manifests itself in several ways. There is the obvious challenge of labor shortages in industries such as agriculture, which may soon lead to food shortages and higher prices. According to the Ministry of Labour. But companies that don’t have a problem with undocumented workers face the friction of having employees pulled aside by ICE officials. One CEO told me that these status checks cost his company millions in delays and lost productivity.

More fear. One of my cousins ​​who works legally in the United States told me that he is reluctant to travel, even domestically, for fear that ICE officials will find something wrong with his paperwork. I thought he was being paranoid until a financial services executive told me last week that he sees employees who work here on visas behaving in a similar way. What’s more, he added, “some of our foreign-born clients are concerned about being denied their bank accounts or credit cards.” Assurances don’t help: “They know we’re in the dark just as much as they are.”

What about the argument that ICE raids will create jobs for American workers? “Maybe someday, but right now, disruption hurts everyone,” this executive said.

Contact the CEO daily via Diane Brady at [email protected]

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