ICE raids in Los Angeles caused 'economic shock,' report says

July 22 (UPI) -- Latino-owned businesses in areas targeted by federal immigration raids last year in Los Angeles County suffered an "immediate economic shock" as well as lasting effects, a report released Wednesday says.

The surge in raids by Immigration and Customs Enforcement in June 2025 created a "chilling effect" that drove customers from businesses anchoring the county's commercial corridors serving Latino and immigrant communities, the study says.

The authors of the report used focus groups and entrepreneur surveys, as well as data on foot traffic. They said businesses closest to the raid sites were hit hardest. In two weeks, businesses in the nine sites studied had 46,000 fewer customer visits and an estimated $3.16 million in accumulated losses.

The authors note that those estimates only include "formal" businesses and not street vendors, home-based businesses and food trucks, common Latino small businesses.

In surveys, 59% of business owners reported that sales dropped by more than 50%, 68% temporarily closed and 51% had staff miss work out of fear.

In addition, the issues persist a year after the surge. About 95% of Latino entrepreneurs reported ongoing financial stress, with many businesses "left with depleted savings, accumulated debt and abandoned plans for growth and investment," the study says.

More than 75% of those responding to surveys said the raids affected their wellbeing, reporting a host of issues including insomnia, panic attacks and gastrointestinal disorders.

"A year later, the crisis is not over," the study says. "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, wellbeing and safety of entire communities."

The report, "The Cost of Fear: the Impacts of Immigration Enforcement on Small Businesses and Latino Entrepreneurs in LA County," is from UCLA's Latino Policy and Politics Institute and the nonprofit Inclusive Actionfor the City.