Since the new government of President Donald Trump began on January 20, the impact on the economy and the family basket of households and Hispanic businesses in North Carolina It has been almost immediate.
The fear of alleged immigration raids, the inflation, the increase in eggs due to the avian virus, to name a few possible causes, has caused all households to be affected in some way.
El equipment Enlace Latino NC interviewed entrepreneurs, workers, homemakers, and business owners to learn firsthand about their experiences in the two months since the new administration began.
The impact on retail sales
Luis Ángel Fuentes is the owner of the El Rey Supermarket, located in the South Boulevard corridor in Charlotte, one of the areas of the city where the most Latino immigrants.
Due to its location, the majority of the supermarket’s customers are Hispanic, which serves as a thermometer to measure the impact of everything affecting the immigrant community at a given time.
And this supermarket, like many businesses in the area, was not spared the impact on this community caused by the restrictive immigration measures during the first weeks of the current administration.
“At first, in the first two or three weeks, the effect was rapid; people were afraid of the raids that occurred here in the city,” Fuentes said.
Fuentes said he noticed sales dropping because people started going out less for fear of immigration authorities, but they’ve also been spending less due to the high cost of many basic staples.
“People are buying more essentials. I think they’re protecting their wallets for anything that might happen in the future,” he commented. “People suddenly aren’t having parties and family gatherings like they used to; they’re more cautious, but people keep coming,” he added.
With regard to duty With Mexico and Canada, Fuentes noted that if they were to go into effect, the impact on his business would be immediate. “Ninety percent of our fruits and vegetables come from Mexico. Likewise, some meat comes from Canada.”
Increase in food supplies
Rubén Granados is a well-known Mexican food entrepreneur who owns several food trucks and Gramartz, a community kitchen where owners of these mobile restaurants can prepare and store their food daily.
For Granados, these have been catastrophic times, but they have not been the only difficult moments that the immigrant community has had to endure in the last 20 years in the country and North Carolina.
“Mainly because of inflation, the rise in the prices of inputs, which is what I have noticed the most for us in the world of gastronomy. If food prices go up, so does the labor“, Granados said.
According to Granados, due to these factors, he has had to reduce workers’ hours at times. However, he added that this winter’s severe weather was also a determining factor.
“During December, January, and February, construction work slowed down due to bad weather, and that affected us because we sell food to construction workers,” he said.
Granados commented that a change of government usually creates uncertainty, but that his union is already accustomed to such changes.
“I remember what happened with the 287g“For us Latinos, 2007 was a very tough year, with the recession and all that. But thank God, we’ve really gotten used to living day to day, and we’re now used to escaping that uncertainty and fear, and here we are, and we have to continue,” the businessman said.
A blow to the family basket
But surely the hardest hit in recent months by everything that’s happening have been homes.
As is the case of Xiomara, a housewife living in Charlotte, who we met leaving the supermarket after shopping, and told us how her household economy has been impacted this year.
“Now we buy less than we did before the new government took office. With $100, you can buy two small bags; you hardly take anything home. You put $200 or $300 in your fridge and it feels like nothing went into it,” he commented.
The housewife says that inflation and the actions of the new government are to blame for the current economic situation.
“Everything that’s happening with the new government, what the new president is doing, has caused everything to go up, while salaries aren’t rising,” he said.
Like Fuentes and Granados, in the Mecklenburg County area, where Charlotte is located, there are 9,973 entrepreneurs in different areas of the economy, and 155,115 immigrants like Xiomara reside there, according to a report by the New American Economy.
Although the actual impact of factors such as inflation, immigration, and government policies has not been measured, a new study will surely reveal the negative effects they have had on the state’s economy and the immigrant community.
You may be interested: How Hispanic Entrepreneurs Are Boosting North Carolina’s Economy
The effects on construction
Alberto Loyola has worked in construction in Asheville for more than two decades. Originally from Guanajuato, Mexico, he came to the United States 25 years ago and has lived in western North Carolina for 22 years. Known in the community as Drywall Driveway, has built his small business with his wife, specializing in drywall installation and finishing.
In the first months of 2025, he has noticed an upswing in activity in the sector. “Since the beginning of the year, there has been more work than in 2024,” said Loyola. “Last year was very slow, but now there is more activity.” However, this increase in activity has not prevented him from facing another significant challenge: the rising cost of materials.
“Each sheet of drywall used to cost $16, and now it’s $26,” he explains. “It’s complicated because we budget with a price, and when we go to buy, the cost has already gone up. It affects us all.” This increase directly impacts small contractors like him, who must readjust their profit margins with each price change.
Added to this is the difficulty in finding labor. “There are very few people available to work here in the area,” Loyola notes.
Regarding possible reasons, he mentions that some fear being arrested. “Many people don’t want to go out, not even to buy food, for the same reason,” he says. Although he claims to have seen no changes in his daily life, he acknowledges that there are those who prefer to stay on the sidelines. “I always walk around without fear. I don’t see anything unusual, like people are saying,” he explains.
Loyola’s testimony reflects a broader concern within the immigrant community. The fear of raids and deportations can cause many Latino workers to avoid situations that could expose them. This fear particularly impacts the construction industry, a sector where the Hispanic community plays a significant role.
Important workforce
According to data published by the National Association of Home Builders (NAHB), Hispanics represent 31.1% of the construction workforce nationwide. In North Carolina, the proportion is higher than in several eastern states, ranging between 25% and 40%.
Added to this is the fact that builders are losing confidence in the market.
El NAHB/Wells Fargo Housing Market Index, which measures builders’ confidence in the housing market, reached its lowest level in five months in February 2025. In particular, the indicator assessing sales expectations for the next six months fell 13 points to 46, reflecting growing pessimism in the sector.
In 2024, the Asheville-Hendersonville region stood out statewide with an increase of 45.8% in building permits, exceeding the North Carolina average.
Permits for single-family homes grew by 17.1% and those for multi-family homes soared by 103.5%, in response to the growing demand for housing in the region. However, this growth has not been without its challenges.
The shortage of workers and rising material prices have begun to affect construction schedules. For workers like Loyola, the challenge is staying in a sector that remains essential but increasingly uncertain.
“As long as there’s work, there’s hope,” he says. However, the outlook isn’t encouraging. Restrictive immigration policies, inflation, and high costs could test the resilience of the Latino construction community in the coming months.
Challenges of an Argentine bakery in Raleigh
Milonga Bakery is a haven of Argentine flavors amidst the local community in Raleigh, North Carolina.
Like many small ones latin companies In the United States, they have faced unexpected challenges caused by inflation, the avian flu crisis, and changes in immigration policy.
Most of their products depend on one essential ingredient: eggs.
“Almost everything, everything has eggs. Pastries have eggs, vanilla ice cream has eggs. Cakes have eggs. Flans have eggs. We had to increase that a little, because otherwise the budget wouldn’t work,” said Verónica Benavente, owner of the family bakery.
The recent increase in egg prices has significantly impacted Milonga Bakery, forcing them to adjust the prices of some products.
“Before, for 30 dozen eggs, we paid around $89, almost $100. With taxes and everything, it was almost $100, and now it’s double that, $224,” Benavente explained. “It’s a huge difference.”
The price increase is due to a global poultry crisis, exacerbated by outbreaks of avian flu that have reduced egg production and raised costs. In addition, the costs of preventing infections among birds have also increased. which is reflected in the final price.
However, the impact isn’t limited to eggs alone. The effects of inflation are still present, also affecting other essential ingredients.
“Sugar and flour prices also went up a bit, but not as much as eggs. Eggs have gone up a lot,” Benavente said. In addition to the higher prices, Benavente has noticed a decrease in customers.
“They’re not coming in very often. I don’t know if it’s because of inflation or because of the increase in prices that has been so high,” the owner added.
Inflation peaked at 9.1% in 2022, driving up prices for essential goods, but an estimated three-quarters of American adults remain concerned about looming price increases. Although the inflation rate in March 2025 is 2.8%, many companies continue to struggle with prices higher than before the rise in inflation.
And uncertainty about Trump’s economic agenda, especially regarding immigration policy and his tariff plans, could further impact the economy.
Milonga Bakery’s clientele is primarily immigrants from Argentina, Uruguay, Guatemala, El Salvador, Mexico, and some Americans. However, they have noticed a more pronounced decline among their Venezuelan customers.
Since Trump’s presidency, deportations increased and Temporary Protected Status (TPS) was recently eliminated for hundreds of Venezuelans, coming into force next month.
This situation has generated uncertainty and fear within the undocumented community, which, according to Benavente, could also be contributing to the decline in customers for Latino businesses like his.
“It’s all a combination of immigration and the economy,” Benavente said.
The economy of North Carolina Has the North been impacted by the change of administration?
Enlace Latino NC consulted experts to analyze how North Carolina’s economy has evolved since the new state administration took office. While some indicators show progress, other sectors face significant challenges.
To better understand this complex reality, we spoke with Dr. Joaquín Alfredo-Ángel Rubalcaba, assistant professor in the Department of Public Policy at the University of North Carolina at Chapel Hill.
“I think the economic impact on North Carolina since this new administration took office is largely mixed, with variations in the economy across different sectors, rather than a uniform negative or positive change in the economy,” he told Enlace Latino NC Dr. Rubalcaba, who holds a PhD in Economics from the University of New Mexico in Albuquerque.
Dr. Rubalcaba commented that something that could be affecting the economy has to do with state and national immigration policies.
“Something that is really important and has been on my mind a little bit, is the enactment of the HB10 at the state level, which I think is also contributing to some of these mixed economic outcomes that we’re going to see, not just now, but in the future,” he noted.
According to Dr. Rubalcaba, there has not been a sharp recession in terms of employment rates, wage growth, or consumer spending that could be linked to changes in administration.
“However, some sectors, such as manufacturing, agriculture, and construction, are likely to be negatively affected by political uncertainty, inflationary pressures, and changes in trade-related policies.”
Other factors that have affected the state’s economy
Dr. Rubalcaba noted that other factors that have affected the state’s economy may be linked to the actions of the Federal Reserve, since the pandemic, as it has used the interest rate as a policy and tool to try to combat inflation.
Other factors would be linked to the labor shortage, andThe change in immigration policies, not only at the federal level but also at the state level, which could create a situation in which tight labor markets in urban areas like Raleigh, Durham and Chapel Hill, as well as in Charlotte, become even tighter.
“And I think this is going to be specifically detrimental to the agriculture, hospitality, and general sectors. Stricter immigration enforcement, you know, leads to a chilling effect on the labor market, and that is that communities are fearful of the current administration’s aggressive immigration enforcement stance, which is essentially leading to less community engagement,” he explained.
Dr. Rubalcaba also mentioned the problems of the supply chain which has been interrupted since the pandemic, but continues intermittently.
“Inputs for production, manufacturing, farming and food processing face continued disruptions due to global and domestic supply chain bottlenecks, resulting in rising costs,” he said.
“The effects of the pandemic have begun to subside somewhat, but with uncertainty surrounding trade policies, we could see continued supply chain issues,” he added.
Another factor mentioned by Dr. Rubalcaba is the local environmental disasters such as the one that occurred in our state, Hurricane Helene and at the national level bird flu.
“So we have a kind of perfect storm for having a lot of uncertainty in prices from one year to the next, and this is difficult to mitigate.”
How was the state’s economy before the new administration?
Dr. Rubalcaba affirmed that the state’s economy had a robust recovery from the pandemic, with economic indicators pointing to a resilient labor market with steady job growth, particularly in the technology and financial sectors in urban areas.
“Aggregate economic output rates in 2024 were about 50 percent higher than the national average, and that’s pretty good. It shows that economic resilience in North Carolina, at least before this administration, was relatively good, with employment rates consistently below the national rate, reflecting a strong labor market,” he noted.
However, he emphasized that economic inequalities persist between urban areas and rural communities, which consistently lag behind in terms of access to education, healthcare, educational attainment, and income.
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