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Fronteras: How tariffs, immigration enforcement are creating a ‘chilling effect’ in the Texas economy

Housing construction in Boca Chica Village in December 2023.
Gaige Davila
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TPR
Housing construction in Boca Chica Village in December 2023.

Federal immigration policies — and the speed in which they change — has impacted Latino-dominated industries across Texas, including construction and farming.

Raids conducted by U.S. Immigration and Customs Enforcement have rounded up workers on construction sites across the Rio Grande Valley. Uncertainty over White House tariffs have also caused prices on materials to skyrocket.

Tonantzin Carmona, a fellow at the Brookings Institution, authored a study on how these federal policies are causing harm to Latino-owned businesses across the state.

Carmona emphasized that Texas is the nation’s leading state in trade, with Latinos making up roughly 40% of Texas’ population.

“Latinos are central to the Texas economy. Immigrants are central to the economy,” said Carmona. “With the series of changes that are impacting these populations, you start to (see), ‘Oh, we might have a problem here. These pressures might be stacking.’”

Carmona said ongoing fear and uncertainty in Latino-owned businesses puts into question the “business-friendly” status Texas often gives itself.

Tonantzin Carmona is a fellow at the Brookings Institution. She wrote about how federal policies are causing harm to Latino-owned firms.
Courtesy
/
Tonantzin Carmon
Tonantzin Carmona is a fellow at the Brookings Institution. She wrote about how federal policies are causing harm to Latino-owned firms.

She said local leaders, nonprofits, and the private sector may need to find ways to keep businesses afloat and bolster economic stability if lawmakers don’t act.

“This status quo is clearly not functioning and might do tremendous harm to the economy,” she said. “There’s already harm happening now but it’s possible, very possible, that it can amplify.”

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Norma Martinez can be reached at norma@tpr.org and on Twitter at @NormDog1