Los Angeles Businesses Grapple with Fear as ICE Raids Paralyze Commerce

19 June 2025

A Mexican food truck is seen in the downtown in Los Angeles, California. REUTERS/Pilar Olivares

Los Angeles is battling more than heat this summer, rising fear and uncertainty grip businesses across the city due to intensified ICE immigration raids. With nearly one third of residents being foreign-born, the recent enforcement actions have disrupted daily life, emptying businesses, unsettling customers, and triggering protests that echo across neighborhoods.

The crackdown, which began early June, has seen federal agents swoop into shopping centers, swap meets, markets, parking lots, car washes, and small storefronts. The impact has been stark: foot traffic has dropped, sales have fallen, and the city’s vibrant street life has been described as “paralyzed.” Vendors and owners who once thrived now worry about survival .

Consider the case of a restaurant manager in Hawthorne, a working-class suburb, who reported a sudden slump in revenue from approximately $13,000 on a typical day to less than $9,000 after nearby ICE activity. She noted that both workers and customers are staying home, afraid to be near targeted areas . Such stories are becoming all too common.

Street vendors, particularly those from Mexican and Central American backgrounds, have vanished. Iconic taco trucks and food stands once buzzing with early morning business are now boarded up or operating at minimal capacity. The impact is reminiscent of pandemic lockdowns, with one vendor reporting revenues falling by as much as 75 percent.

Small business owners across LA County echo these sentiments, warning that the current climate of fear could cause more damage than the early months of COVID‑19. One U.S.-born shop owner of Mexican descent compared the scene to a ghost town. He emphasized that the community simply “can’t last so long like this, a couple of months maybe” before the economic toll becomes irreversible.

Agricultural operations, hospitality venues, and restaurants have also sounded the alarm. These sectors depend heavily on immigrant labor, with farms, hotels, and eateries pleading for exemptions from ICE sweeps to protect operations and economic stability. Nationally, businesses are reporting workers unwilling to show up before dawn, and companies are scrambling to avoid labor shortages as enforcement escalates .

On the streets of South Bay and Montebello, residents, including U.S. citizens have been detained amidst reports that ICE is conducting “roving patrols” based on appearance. The fear of racial profiling has spread widely as families receive texts urging them to stay indoors, and community groups like KTown for All, Unión del Barrio, and Clergy and Laity United for Economic Justice have mobilized to provide legal support and monitor enforcement actions.

Los Angeles Mayor Karen Bass recently lifted a temporary downtown curfew that had been enacted during protests and property damage, noting that people should feel safe returning to public life. Nevertheless, the resumption of normal activity remains tentative in many neighborhoods .

In response to the disruption, the LA County Board of Supervisors unanimously authorized an economic assessment, aiming to quantify the damage and allocate resources to affected workers and their families. Regional and state leaders have echoed the call for balance, asserting that the city must safeguard law-abiding communities and immigrant entrepreneurs to preserve its economic and cultural vitality.

If the raids endure, analysts warn the effects may ripple well beyond today’s losses. The long-term risk includes shuttered small businesses, weakened labor pools, diminished consumer spending, and a chill on entrepreneurial activity, areas historically driven by immigrant communities.

As the dragnet widens, Los Angeles faces a stark challenge: restore stability or risk long-lasting economic and social scars. Business owners are bracing for a prolonged fight. Community activists are joining in to resist. In the meantime, the city’s iconic street vibrancy, defined by taco trucks, family-owned shops, and late-night diners, hangs in a fragile balance, suspended between thriving diversity and widespread dread.