Mass arrests in Chicago's Latino neighbourhoods have slashed sales by up to 70%, threatening small businesses that generate over USD 90 crore monthly and contribute USD 80,000 crore annually to US economy.

President Donald Trump's immigration crackdown is devastating Chicago's Latino business districts, with shop owners reporting catastrophic drops in revenue since September when ‘Operation Midway Blitz’ began targeting the city's immigrant communities.

Little Village, Chicago's predominantly Latino neighbourhood that generates over USD 90 crore in monthly sales, has seen businesses lose between 20%-70% of their income. The shopping district ranks second only to Michigan Avenue's Magnificent Mile in tax revenue generation for Chicago.

Operation Midway Blitz has resulted in more than three thousand arrests across Chicago and northwest Indiana since September, according to Department of Homeland Security figures. Court documents reveal few of those arrested had criminal histories, despite Trump's claims that sweeps would target ‘worst of the worst’.

Jennifer Aguilar, executive director of Little Village Chamber of Commerce, said three out of every five business owners fear they cannot pay rent if the downturn continues through year-end. "The day is shot after agents show up here. Businesses are empty because people lock in for the day," Aguilar said during visits to affected establishments.

Raul Muñoz Jr, whose family has run Taquerias Atotonilco restaurant since the 1970s, reports one-third fewer sales on busiest days compared to last year. Customers increasingly request phone orders, with children and teenagers doing shopping instead of adults, he said.

Lilia Barragan's beauty salon, which employed four workers last year, now operates with Barragan alone. She receives at most two appointments daily, with all bookings cancelled when federal agents appear nearby. Barragan has begun making jewellery for extra income.

Gift shop owner Luz Ortiz estimates sales at Regalos y Creaciones Lucy have plummeted 60% since early September. Normally sold-out Day of the Dead merchandise remained unsold by late October, leaving no space for Christmas displays.

José López, owner of Los Candiles restaurant, tracked daily tickets on a kitchen calendar. Last October averaged 40 to 50 weekday orders. This October dropped to 20s, with first week showing just nine or 10 tickets, marked with frowning faces. Weekend rush fell from 100 to 40 tickets.

Latino-owned businesses contribute more than USD 80,000 crore annually to United States economy, according to US Hispanic Chamber of Commerce. Chamber president Ramiro Cavazos said enforcement actions have disrupted operations nationwide, forcing businesses to cut staffing and operating hours.

Teresa Córdova, director of Great Cities Institute at University of Illinois Chicago, warned the economic damage extends beyond Little Village. "Your sales tax is very important to any of your municipal budgets or even your state budgets. So it starts to erode your revenue to your city," Córdova stated.

Similar patterns emerged in Charlotte, North Carolina, where businesses closed after immigration arrests. Manolo Betancur shut his bakery after witnessing Border Patrol agents stopping people outside. "I'm not going to risk my customers. Safety is more important than any money," Betancur told local media.

In Little Village, New Life Community Church saw Sunday attendance drop from 60-70 worshippers to 25-30. Street vendors abandoned carts permanently, losing livelihoods. HVAC technician Juan Valderrama described watching co-workers disappear from job sites, too fearful to work.

Illinois state senator Celina Villanueva, who grew up in Little Village, said the neighbourhood weathered the Great Recession and pandemic but current immigration operation has crept into all life aspects. "People lock in for the day and they won't come out until the next day," she said.

Homeland Security spokesperson Tricia McLaughlin defended arrests, stating detainees ‘have all broken the immigration laws of our country’. Operations have targeted Los Angeles, Portland, and Chicago, where Chicago Tribune reported hundreds arrested lacked criminal histories.

Source: The Washington Post and NBC News.