Trump's planned deportations poised to spike U.S. inflation
Experts warn that the mass deportations planned by Trump, anticipated since the beginning of his presidency, may affect inflation and price increases in the USA, reports CNBC.
In 2024, inflation in the USA decreased, but economists caution that the planned mass deportations of immigrants illegally residing in the country by President-elect Donald Trump may impact prices and the entire economy. He and his appointees in the new administration have announced that deportations will commence on a large scale immediately following the Republican's inauguration as President of the USA in January.
"Certainly the economic impacts are going to be felt," said David J. Bier, Director of Immigration Studies at the Cato Institute. "There’s going to be supply chain issues. There’s going to be increases in prices, decreases in services," he added.
Trump and mass deportations of migrants: the economy will feel it
There is also concern that the deportation of such a large number of undocumented immigrants could lead to a noticeable gap in the labor market. According to a 2023 study published in the "Journal of Labor Economics," it was found that 44,000 American workers may lose their jobs for every 500,000 immigrants removed from the labor market.
"Immigrants, especially unauthorized immigrants, are much more likely to work in the types of jobs that create the goods and services where we’re seeing the prices go up," said Chloe East, a researcher at the National Bureau of Economic Research and co-author of the 2023 study, to CNBC.
Although the exact effects cannot be predicted, East notes that based on previous experiences with mass deportations, the prices of goods and services that immigrants influence, such as in construction and agriculture, are likely to rise.
