Victoria Craig hosts this Financial Times News briefing examining the economic impact of President Trump's immigration crackdown. Guy Chazan, who covers U.S. politics and policy for the FT, reports from the Rio Grande Valley of South Texas where ICE raids are disrupting the construction industry.

The episode explores how the 'Protecting the American People Against Invasion' executive order, signed hours after Trump took office, has created unintended economic consequences. Despite a construction boom driven by companies like SpaceX and major LNG projects, builders are struggling with labor shortages and project delays caused by immigration enforcement.

The conversation reveals tensions between political immigration goals and economic realities, particularly in Texas where light regulation attracts businesses but ICE raids threaten the construction workforce needed to support that growth.

Construction Crisis in South Texas Boom Economy

Builder Ronny Cavassos reports ICE raids have forced him to extend construction loans beyond the standard 12-month terms, saying 'We basically built those houses for free' due to eliminated profit margins.

The Rio Grande Valley is experiencing a construction boom with SpaceX expansions, new LNG plants, and IKEA developments, but ICE enforcement is slowing these projects.

Texas attracts businesses through light-touch regulation, but immigration enforcement creates a contradiction by hampering the construction sector needed to support business growth.

Migrant Workers Train America's Construction Workforce

Ronny Cavassos explains that skilled trades are dominated by immigrant labor: 'It's Latinos and mostly from Mexico... That's who's willing to do the skilled labor trades, the tile setting, the concrete pouring, the roofing.'

Construction training happens through mentorship where 'a maestro is somebody that's got the knowledge... They've been trained and fortified on the job side. They're the ones who train the next generation.'

Builders dismiss the White House claim that domestic workers will fill these roles, with Cavassos asking 'Tell me where any kid that doesn't want to go to college, where they can go to learn how to frame a house. That doesn't exist anywhere.'

Agricultural Sector Faces Similar Disruptions

ICE is detaining even legal H2A visa holders, disrupting the temporary agricultural worker program that allows farms to bring in harvest workers.

Dante Galiazzi from Texas International Produce Association warns: 'The grocery store doesn't care what's happening with enforcement. They're just going to move on to the next guy that has that order.'

Unlike construction, agriculture has established legal pathways for temporary workers, but enforcement is undermining even these authorized programs.

Economic Impact Reaches $40 Billion in Lost Spending

Brookings Institution study projects immigrant consumer spending will fall $10-40 billion this year as enforcement creates fear of leaving homes for shopping and dining.

Agriculture, construction, and hospitality sectors affected by immigration enforcement represent 9% of total US GDP.

Reduced immigrant influx could 'slow economic growth, push up wages, stoke inflationary pressures across the economy' according to Brookings research.

Political Backlash from Trump's Own Supporters

Mario Guerrero, head of South Texas Builders Association and Trump voter, now questions the administration after ICE detained children of a trumpet player whose father tried to comply with court dates.

Polling suggests even Republican voters think the immigration crackdown 'has gone too far' due to aggressive tactics in cities like Minneapolis.

Texas builders who voted for Trump in 2024 are expressing regret over their votes due to the economic impact on their businesses.

Resources Mentioned

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workers who train each other in skilled trades like tile setting and roofing Brookings Institution study shows immigrant consumer spending could fall $10-40 billion due to enforcement fears Industrie

The Brookings Institution A Fifty-Year History

ustries alone together make up as much as 9% of US GDP. Exactly. For example, there's been a recent study by the Brookings Institution, which basically said that in industries that depend on immigrant