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Mass Deportations Could Wreck the U.S. Economy and Drive Up Prices, Experts Warn

Mass Deportations Could Wreck the U.S. Economy and Drive Up Prices, Experts Warn
Protesters shout slogans during a pro-migrant rally, demanding an end to deportations on Sunday, Feb. 9, 2025, in New York.FILE Photo | AP

One of Donald Trump’s key promises in his 2024 presidential campaign was to carry out mass deportations of immigrants living in the U.S. without legal authorization. Now, as president, his administration is ramping up efforts to detain and remove undocumented immigrants.

According to the U.S. Immigration and Customs Enforcement (ICE), between 600 and 1,100 immigrants are being detained daily as of January 2025. This is a sharp increase from the 282 daily immigration arrests recorded in September 2024 under the Biden administration.

At this rate, Trump’s administration could apprehend 25,000 immigrants in his first month alone—about 300,000 annually. However, this number still falls short of the “millions and millions” of deportations Trump had pledged.

Barriers to Large-Scale Deportations

Despite its aggressive stance, the administration is facing logistical and financial hurdles. A lack of funding, limited detention centers, and a shortage of immigration officers have slowed deportation efforts.

To push forward, the Trump administration has requested $175 billion from Congress to fund immigration enforcement over the next four years, according to a February 11, 2025, report by Axios.

What Would Mass Deportations Mean for the U.S. Economy?

Experts warn that deporting millions of undocumented immigrants would have far-reaching economic consequences. The ripple effects would hit multiple industries, including agriculture, construction, and food services.

1. Food Prices Would Skyrocket

Undocumented immigrants make up about 5% of the U.S. workforce, but their presence is much higher in certain industries.

In agriculture, for example, roughly half of all farmworkers lack legal status, according to the U.S. Department of Agriculture. Many of these workers hold essential roles, from supervising crops to operating specialized machinery like irrigation systems and fertilizer sprayers.

If these workers were suddenly removed, food production would decline. With fewer hands to pick fruits and vegetables, prepare shipments, and distribute goods, grocery and restaurant prices would climb. More food imports would be needed, further driving up costs for American consumers.

2. Construction Would Take a Hit

The construction sector relies heavily on immigrant labor. Nearly one in four construction workers in the U.S. is undocumented. These workers specialize in roofing, drywall installation, and flooring—jobs that require skill and experience.

Removing them would not only slow down home-building projects but also push housing prices higher due to labor shortages.

3. State-Level Policies Show the Economic Impact

Past immigration crackdowns offer a glimpse into what could happen nationwide.

In 2011, Alabama passed HB-56, a law that allowed local police to check the immigration status of people stopped for traffic violations. It also barred landlords from renting to undocumented immigrants.

As a result, many immigrant workers left the state, causing severe labor shortages. Alabama lost an estimated $2.3 billion to $10.8 billion in annual gross domestic product (GDP).

Would Mass Deportations Benefit Americans?

The Trump administration argues that deporting undocumented immigrants would free up jobs and reduce taxpayer costs. However, research suggests otherwise.

  1. Labor Shortages Would Persist – Immigrants often fill jobs that many Americans are unwilling to do, such as farm labor and food service. Even if citizens were willing to take these jobs, the available workforce wouldn’t be large enough to fill the gap.

  2. Higher Wages, Higher Costs – Fewer workers would lead to increased wages. While this might sound like a positive change, it would raise costs for businesses, making it harder for them to expand.

  3. Economic Contributions Would Decline – Undocumented immigrants contribute an estimated $96 billion annually in federal, state, and local taxes. They also receive fewer public benefits than U.S. citizens. Most do not qualify for Social Security, Medicare, or food assistance programs like SNAP.

The Bottom Line

Undocumented immigrants play a crucial role in the U.S. economy. They help sustain industries, pay taxes, and support local businesses. While Trump insists there is “no price tag” on mass deportations, the economic consequences would be severe.

From food prices to housing costs, everyday Americans would feel the impact—whether they realize it or not.

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