Businesses are failing at record numbers in 2025. Staying afloat could become impossible.

Donald Trump’s draconian immigration policies are already wreaking havoc on small businesses across America.

From restaurants to farms, hotels to construction sites, the industries that rely most on immigrant labor are feeling the squeeze, and the results are dire: shorter operating hours, closures, and skyrocketing costs. The very workforce that keeps these businesses running is being gutted—not by economic downturns or competition, but by the government’s own policies.

Small Businesses Struggling to Stay Afloat

The impact of Trump’s immigration crackdown can be measured in stark numbers. According to the American Farm Bureau Federation, over 42% of U.S. farmworkers are undocumented immigrants. Yet, with Trump doubling down on deportations and slashing legal immigration pathways, farms are facing an unprecedented labor crisis. Crop losses are mounting as there simply aren’t enough workers to bring in the harvest. When food rots in the fields, prices surge at the grocery store, directly hitting consumers.

Restaurants, another industry heavily reliant on immigrant workers, are also bearing the brunt. A 2024 report from the National Restaurant Association found that over 1.5 million hospitality jobs remain unfilled due to labor shortages, leading to shorter hours, service disruptions, and closures. Some restaurants, unable to keep up, have permanently shuttered.

Deporting the Wrong People

While the Trump administration claims to be targeting violent criminals, the reality is much different. Immigration and Customs Enforcement (ICE) raids are detaining and deporting people with no criminal history at alarming rates. A 2023 report from the Migration Policy Institute found that nearly 70% of undocumented immigrants detained in workplace raids had no criminal record whatsoever. These are the same people working long hours cleaning hotel rooms, picking produce, and cooking meals—jobs that American-born workers show little interest in taking.

The result? An atmosphere of fear in immigrant communities. Law-abiding workers are afraid to show up for shifts, terrified of being caught in a raid and separated from their families. Schools in immigrant-heavy communities have reported double the usual absentee rates, with parents keeping children home out of fear of deportation. Hospitals, too, are feeling the strain, as many immigrants, even those with legal status, avoid seeking medical treatment, afraid their names will end up on some government list.

The Reality of Immigrant Crime vs. Political Rhetoric

Trump’s immigration rhetoric paints a picture of immigrants as violent criminals, but the facts tell a different story. According to a 2023 study from the Cato Institute, immigrants, both documented and undocumented, commit crimes at lower rates than native-born Americans. Yet, this administration continues to peddle fear-mongering narratives that fuel xenophobia and justify harsh crackdowns on entire communities.

Meanwhile, the real criminals, human traffickers, cartel members, and violent offenders, continue operating, largely unaffected by these broad and indiscriminate immigration policies. Law enforcement officials have repeatedly pointed out that the mass deportation approach makes their jobs harder, as immigrants who could provide valuable intelligence on criminal activities are too afraid to come forward.

Businesses on the Brink of Collapse

For many small businesses, the immigration crackdown is a financial disaster. The labor shortages created by these policies have left jobs vacant that no American-born worker wants. Agriculture, construction, and hospitality are all feeling the pain. A 2024 U.S. Chamber of Commerce study found that there are nearly 10 million unfilled jobs, many of them in industries heavily dependent on immigrant labor. This is not a case of “immigrants stealing jobs”—it’s a case of American workers refusing jobs that are now sitting vacant.

The impact of this labor gap is devastating. Businesses that can’t find workers must cut back on operations, reduce their services, or close entirely. Higher wages, while beneficial for workers, translate into increased prices for consumers. This isn’t just hurting small business owners; it’s hurting everyday Americans who now have to pay more for essential goods and services.

The Tariff Double-Whammy

As if kneecapping the labor force wasn’t enough, Trump’s tariffs on imported goods have further squeezed small businesses. Many rely on materials and products from abroad, and the added costs from tariffs are forcing them to either eat the loss or pass the price hikes onto customers. The result? More businesses teetering on the brink of closure.

Take small manufacturing firms, for example. Many of these businesses rely on imported parts to assemble their products, and thanks to Trump’s trade wars, their costs have soared. A 2024 analysis by the Brookings Institution found that small businesses have been hit three times harder by tariffs than large corporations, which have more resources to absorb the increased costs. This has led to downsizing, layoffs, and bankruptcies.

A War on Small Business Disguised as “America First”

Despite Trump’s rhetoric about putting American businesses first, his policies are actively strangling them. By cutting off the immigrant labor force and slapping tariffs on essential goods, the administration has created a perfect storm for economic decline. This is not about protecting American jobs—it’s about pandering to an anti-immigrant base at the expense of economic reality.

The cruelty and incompetence of these policies are evident. Immigrant workers, who form the backbone of industries crucial to America’s economy, are being pushed into the shadows, while small business owners are left scrambling to keep their doors open. And for what? To satisfy a political agenda built on fear and misinformation?

If Trump truly cared about American business, he would recognize that immigrants are not the enemy. Instead, his policies are actively undermining the very economic foundation he claims to protect. The question now is: how much more damage will be done before his supporters realize that their so-called “America First” agenda is actually destroying the small businesses they claim to champion?

For many business owners, the writing is already on the wall. The labor shortages, the economic uncertainty, the mounting costs—it’s all adding up to an unsustainable situation.

If these policies continue unchecked, the only thing left of “America First” will be a devastated small business landscape and a weakened economy, all sacrificed at the altar of xenophobic politics.

This isn't about politics. This is about common sense and surviving in what the business world is in the year 2025.

Ed Berliner is a successful serial entrepreneur who has started 6 companies over his lifetime, always using a diverse and dedicated workforce. He now takes his experience on the road and via virtual studio talking to and educating businesses on the fact about workers in this "new world". Contact Ed today and discuss having his powerful presentation at your next event.