Commentary: Cloud of fear hangs over Latino commerce, affecting everything along the supply chain

This article was published on Crain’s Chicago Business on September 4, 2025: https://www.chicagobusiness.com/elevate/cloud-fear-hangs-over-latino-commerce-opinion

Commentary: Cloud of fear hangs over Latino commerce, affecting everything along the supply chain

By: Jaime di Paulo, President and CEO of the Illinois Hispanic Chamber of Commerce

For years, Latinos have been at the heart of America’s economic engine. They are small-business owners, workers, consumers and contributors to numerous industries that keep Illinois moving: agriculture, food processing, construction, manufacturing, logistics, retail and more. Yet today, these entrepreneurs are living under a growing shadow of fear, disrupting not only their own lives, but also the supply chain that fuels our economy.

Immigrants are not a threat to this country. They are the backbone of it. In Illinois, Latinos comprise approximately 18% of the population and contribute $100.1 billion annually in taxes, wages and consumer spending, according to a 2021 report by the Center for Economic Research and Forecasting at California Lutheran University.

When they thrive, we all benefit. When fear and uncertainty keep them from fully participating in everyday life, the negative consequences are real.

Here’s an example: When a family decides not to dine out due to concerns about being targeted by U.S. Immigration and Customs Enforcement, the impact extends beyond the loss of $100 for the restaurant. It also means approximately $10 in local sales tax won’t reach the city and state. A server misses out on a tip. A distributor may receive smaller orders for bakery and produce items. The delivery driver will work fewer hours, the fuel supplier will sell less diesel, and the laundry service will have less work.

One skipped meal becomes a quieter street, thinner paychecks and less revenue for basic services.

The same principle applies to jobs. When a small construction company owned by an immigrant has to scale back operations, it’s often because skilled workers are hesitant to come to work. A single deferred payment of $100,000 is not just a delayed invoice; it can push back payroll, reduce orders from the lumberyard and concrete supplier, and delay truck rentals.

Meanwhile, the developer’s interest clock continues to tick, the title company has to reschedule, and the city must wait longer for permitting and inspection fees.

When delays accumulate across multiple projects, financing costs increase for all parties. And the community has to wait longer for those housing or retail developments.

Retail follows the same chain reaction. When consumers stay home from neighborhood corridors, inventory accumulates, markdowns increase and reorders decline. Wholesalers cut shifts. Cleaning crews get fewer calls. The commercial landlord sees rent risk rise and delays maintenance. Every skipped $50 purchase reverberates through vendors and workers who depend on steady demand.

The current atmosphere has led to workers skipping shifts, entrepreneurs halting hiring and consumers postponing purchases. In the early months of the Trump administration, Latino-owned businesses reported declining revenues.

While some believe strict enforcement of regulations protects jobs, it actually creates uncertainty. This fear accumulates, causing a neighborhood-level recession one transaction at a time.

To move forward, we need to restore confidence in business by enabling employers to retain their valued workers through reliable and lawful pathways. A recent Brookings Institution article articulated it well: “Narrow, targeted reforms — expediting work permits, closing asylum loopholes, expanding permanent and temporary lawful visas, creating a path to legal status for those who have lived here for many years, and promoting talent retention — are all achievable, necessary and in our national interest.”

Small businesses are the pillars of communities. When they thrive, every aspect of our society improves. At the Illinois Hispanic Chamber of Commerce, we will continue to invest in entrepreneurs and businesses of all sizes, so that families, businesses, suppliers, and consumers can continue to drive our city and state forward.

We are not alone in believing immigration reform is urgently needed. A Gallup poll conducted this summer found Americans are increasingly supportive of providing immigrants with a path to citizenship. The poll concluded: “Americans’ attitudes on immigration have largely returned to where they stood before the recent border surge, marked by broader appreciation for immigration, a reduced desire to limit it, and greater support for pathways to citizenship for undocumented immigrants.”

Our message to lawmakers — the only ones who can truly address this crisis — is clear: Take action, and do it now, for the sake of our economy and the future of our country.