Trump’s own Labor Department quietly admits his immigration crackdown risks ‘supply shock-induced food shortages’ and higher prices
Real Estate
Fortune

Trump’s own Labor Department quietly admits his immigration crackdown risks ‘supply shock-induced food shortages’ and higher prices

Why This Matters

The Labor Department's filing also admitted that Americans are not willing to replace undocumented farmworkers.

October 11, 2025
06:55 PM
4 min read
AI Enhanced

Economy·ImmigrationTrump’s own Labor Department quietly admits his immigration crackdown risks ‘supply shock-induced food shortages’ and higher pricesBy Jason MaBy Jason MaWeekend EditorJason MaWeekend EditorJason Ma is the weekend editor at Fortune, where he covers , the economy, finance, and housing.SEE FULL BIO Workers harvest corn at Yakama Nation Farms in Wapato, Washington, on July 31.Emree Weaver—Bloomberg via Getty ImagesThe Trump administration quietly issued a dire warning the president’s immigration crackdown, admitting that it risks food shortages and that American workers will not step up to fill labor needs.

The startling acknowledgment was buried in an Oct. 2 filing in the Federal Register to explain a new rule that would lower wages under the H-2A visa gram, which allows U.S.

companies to bring in foreign nationals for temporary agriculture jobs.

As first reported by the American spect, the Labor Department said “the current and imminent labor shortage exacerbated by the near total cessation of the inflow of illegal aliens, increased enforcement of existing immigration law, and global competitiveness pressures described below, presents a sufficient risk of supply shock-induced food shortages to justify immediate implementation” of the rule.

It added that the lack of undocumented and documented workers “results in significant disruptions to duction costs and threatening the stability of domestic food duction and prices for U.S consumers.” At the same time, the Labor Department’s filing also admitted that Americans are not willing to replace undocumented farmworkers.

That’s despite a sharp slowdown in the overall labor market in recent months with hiring coming to a near standstill as Trump’s aggressive tariff regime raises costs and creates uncertainty for es.

Meanwhile, Agriculture Secretary Brooke Rollins has vowed that the U.S. agricultural workforce will become “100% American” as a result of the immigration crackdown.

But the Labor Department sees things much differently.

“In addition, the Department does not believe American workers currently unemployed or marginally employed will make themselves readily available in sufficient numbers to replace large numbers of aliens no longer entering the country, voluntarily leaving, or choosing to exit the labor force due to the self-perceived potential for their removal based on their illegal entry and ,” the filing in the Federal Register said.

According to the Census Bureau, foreign-born workers made up less than 19% of the U.S. labor force in 2023 but accounted for 38% of jobs in farming, fishing and forestry.

The Federal Register filing suggested that is higher, estimating that 42% of the U.S. crop workforce is unable to enter the country, faces potential deportation, or is leaving the U.S.

The Labor Department also recognized that agricultural work is among the most physically demanding and hazardous occupations in the U.S., requiring manual labor, long hours, and exposure to extreme weather.

The department added that its experience with the H-2A visa gram demonstrates “a persistent and systemic lack of sufficient numbers of qualified, eligible and interested American workers to perform the kinds of work that agricultural employers demand.” The Labor Department didn’t immediately respond to a request for on Saturday.

But a senior administration official told the Washington Post that Trump is “strengthening the farm workforce and imving H-2A and H-2B visa grams” while also “enforcing the law and prioritizing fixing grams farmers and ranchers rely on to duce the safest and most ductive food supply in the world.” Amid backlash from the agriculture and hospitality industries, Trump ordered a pause to immigration raids on those workers in June but then quickly flip-flopped.

The lack of immigrant workers represents another headwind hitting the agriculture economy, which has been suffering from lower crop prices and high input costs for the last three years.

And more recently, Trump’s trade war has mpted China to hold off on buying any U.S.

soybeans, causing farm groups to plead with the administration to reach a trade deal that unlocks orders as harvest season begins.

The Labor Department cited studies that have found that even a 10% decrease in the agricultural workforce can result in a 4.2% drop in fruit and vegetable duction and a 5.5% decline in farm revenue.

“U.S. agricultural employers need a legal and stable workforce to support their farming operations, and persistent labor shortages and increases in duction costs will only harm U.S.

competitiveness, threaten food duction, drive up consumer prices, and create instability in rural communities,” the filing said. Fortune Global Forum returns Oct. 26–27, 2025 in Riyadh.

CEOs and global leaders will gather for a dynamic, invitation-only event shaping the future of . Apply for an invitation.

FinancialBooklet Analysis

AI-powered insights based on this specific article

Key Insights

  • The Federal Reserve's actions could influence market sentiment across sectors
  • Consumer sector trends provide insights into economic health and discretionary spending patterns

Questions to Consider

  • How might the Fed's policy stance affect borrowing costs and economic growth?
  • What does this consumer sector news reveal about economic health and spending patterns?

Stay Ahead of the Market

Get weekly insights into market shifts, investment opportunities, and financial analysis delivered to your inbox.

No spam, unsubscribe anytime