A new report from the Federal Reserve Bank of Dallas warned that President Trump’s immigration policies could significantly lower U.S. economic growth. The report found that stricter immigration enforcement and fewer migrants crossing the southern border could reduce U.S. gross domestic product (GDP) by some 0.8% in 2025. After modeling and assessing five different scenarios of reduced migration, the report found that the most pronounced effect was weaker economic growth, alongside a modest uptick in inflation under the Trump Administration’s restrictive immigration policies. Notably, reduced immigration inflows at the border, not deportations, represented most of the negative effect on GDP growth, accounting for 93% of the projected slide in GDP growth.
