US experts warn of economic and social fallout from Trump’s immigration policies

WASHINGTON—A comprehensive analysis presented at a Brookings Institution seminar has revealed profound economic and social consequences stemming from the Trump administration’s aggressive immigration policies. Experts from multiple research institutions detailed how sweeping restrictions implemented throughout 2025 have triggered the first net migration decline in over half a century, with far-reaching implications for the nation’s labor market and community stability.

According to David Bier, Director of Immigration Studies at the Cato Institute, the administration’s approach has paradoxically created more undocumented immigrants by terminating legal statuses at a rate exceeding actual deportations. “The cancellation of parole programs, near-complete termination of refugee admissions, and the exclusion of approximately 20% of legal immigrants from abroad represent unprecedented restrictions,” Bier explained, noting that administrative backlogs and frequent policy changes have further crippled processing systems.

The economic impact has been particularly severe. Wendy Edelberg, Senior Fellow in Economic Studies at Brookings, projected that the swing from strong positive net migration in 2024 to negative figures in 2025 represents a dramatic contraction in labor supply. This reversal has forced downward revisions in employment growth projections to approximately 30,000 jobs monthly by year’s end 2025, with potential negative growth looming in 2026 despite low unemployment rates.

Consumer spending has suffered significantly, with Edelberg estimating reductions between $40-$60 billion in 2025 alone, plus an additional $10-$40 billion through 2026, attributing substantial portions of retail revenue declines to diminished immigrant spending power.

The statistical evidence underscores these concerns. Pew Research Center data indicates the U.S. foreign-born population dropped from 53.3 million to 51.9 million between January and June 2025—a 2.6% decline representing the most significant reduction in decades.

Policy implementation has been remarkably aggressive, with Kristie De Pena of the Niskanen Center noting the administration took over 500 immigration actions in its first year, including 38 executive orders comprising 17% of all orders signed. This executive dominance has occurred alongside minimal congressional involvement, creating what experts describe as an unusually unilateral approach to immigration overhaul.

The latest development came Wednesday with the indefinite suspension of immigrant visa processing for applicants from 75 countries, effective January 21. The State Department cited concerns about potential welfare dependency among migrants from targeted nations including Brazil, Iran, Russia, Somalia, and Haiti.

Enforcement measures have provoked substantial local resistance. Los Angeles County unanimously established “ICE-free zones” prohibiting federal agents from using county property for raids without permits. This response follows reports of escalating ICE operations, with daily arrests rising from 350 in January 2025 to over 500 by August—many involving non-criminal individuals.

Meanwhile, Minneapolis continues to experience escalating protests triggered by recent ICE raids that residents perceive as excessively aggressive, reflecting growing national tension over immigration enforcement methodologies.