Key Points:
The implementation of mass deportation policies proposed by President-elect Donald Trump could lead to a significant increase in food prices due to labor shortages in the agricultural sector.
Chuck Conner, former USDA Deputy Secretary, emphasized that without undocumented workers, food production would decline, causing prices to rise sharply.
According to USDA data from 2018–2020, only 36% of U.S. farmworkers were citizens, 23% had legal work authorization, and 41% were undocumented.
Labor Dependency in Agriculture:
Reports estimate approximately 300,000 undocumented immigrants are employed in the U.S. agricultural sector, with 206,000 involved in food production tasks like slaughtering livestock, seafood processing, and handling produce.
The U.S. food supply chain relies on an estimated 1.7 million undocumented immigrants overall.
Economic Impact:
Mark Zandi, Chief Economist at Moody's Analytics, warned that mass deportations would disrupt the agricultural and food processing industries, leading to severe labor shortages, higher costs, and inevitable food price inflation.
Proposed tariffs by Trump, such as a 60% tariff on Chinese goods and universal tariffs on imports, could further elevate costs for tropical fruits, seafood, coffee, and nuts imported into the U.S.
Policy Developments:
Trump’s plan for large-scale deportations is supported by his selection of key personnel, such as South Dakota Governor Kristi Noem for Secretary of Homeland Security, signaling preparations for executing immigration enforcement measures.
This complex issue highlights the potential ripple effects of aggressive immigration policies on labor markets and consumer costs.