Minneapolis businesses struggle during Trump's immigration enforcement
surge
[January 22, 2026] By
SAFIYAH RIDDLE
At Taste of East African in Minneapolis, the manager and owner are the
only employees who come to work now, serving new customers who aren’t
familiar with the food but are trying to support a restaurant challenged
by a federal immigration enforcement surge.
Like the employees, the usual patrons are afraid to come to a restaurant
in an area heavily populated by immigrants that has been a frequent
target of immigration arrests. Gig workers aren't accepting orders for
delivery because they, too, are afraid.
“Even if you tell ICE (Immigration and Customs Enforcement) you’re a
citizen they won’t listen, so everyone is scared,” said the restaurant's
manager, Hibaq Nimale, who is a U.S. citizen raised in Kenya as a
refugee from Somalia.
Businesses across large swaths of Minneapolis have taken a hit as
President Donald Trump’s administration carries out a massive
immigration operation that has spurred protests. As staff and customers
stay home and protesters target businesses they see as aiding federal
immigration enforcement, countless stores have temporarily closed,
canceled events or reduced hours. Some hotels that housed federal
immigration officers and saw protests have stopped accepting
reservations altogether, while Minneapolis-based Target Corp. also has
seen protests.
And the economic pressure shows no signs of abating as plans for a
general strike planned on Friday to protest the immigration crackdown
has gained momentum.
Adding to an already struggling economy
The state of Minnesota and the Twin Cities cited devastating economic
impacts in a lawsuit filed this month imploring a federal judge to halt
the immigration operations. The lawsuit asserted that some businesses
have reported sales drops up to 80%.
An October report from the Minneapolis Federal Reserve noted sluggish
economic indicators even before over 2,000 federal immigration officers
began arriving in Minneapolis and St. Paul. But a January report
emphasized that some Minnesota businesses experienced dampened sales and
slower foot traffic out of “fear of immigration enforcement.” Nearly 20%
of all businesses surveyed reported lower employment head counts citing
similar concerns.
“I’m seeing it impact everybody, just because of the lower levels of
people traveling and spending discretionary income,” Adam Duininck, the
CEO of the Minneapolis Downtown Improvement District.
Even white collar businesses have been impacted, according to Fred
Haberman, the co-founder and CEO of a small marketing firm in
Minneapolis. His operations have been impacted because of significant
disruptions to “support systems,” like schools and day care programs,
that employees rely on to maintain regular work schedules, he said.
He worries that the city's economic landscape could be permanently
altered if the federal government doesn't reverse course soon.
“Many of these businesses don’t have huge margins to play around with,”
Haberman said.
In a statement, Department of Homeland Security spokesperson Tricia
McLaughlin pointed to the protests and what she called “the fact
sanctuary policies won't allow us to work with state and local law
enforcement” when asked about the economic concerns.
Uncertainty for hotels
Massive hotel chains like Hilton have struggled to navigate the
conflict. At least one location canceled reservations for federal
immigration officers after frequent protests — only to reverse course
after the DHS accused it of impeding law enforcement.
At least three Twin Cities hotels that protesters said housed
immigration officers were not accepting reservations Wednesday. Rooms
could not be booked online before early February at the Hilton
DoubleTree and IHG InterContinental in downtown St. Paul and at the
Hilton Canopy in Minneapolis.
Over the phone, an InterContinental hotel front desk employee said it
was closing for the safety of the staff but would not elaborate. Signs
in front of the DoubleTree and InterContinental said they were
“temporarily closed for business until further notice.” The Canopy,
which has been the site of noisy protests by anti-ICE demonstrators
aimed at preventing federal officers from sleeping, was open but not
accepting reservations.
Hilton and IHG did not respond to emails seeking comment.
[to top of second column] |
Community members and neighbors of people detained by ICE gather in
protest at a Target store, Monday, Jan. 19, 2026, in St. Paul, Minn.
(AP Photo/Yuki Iwamura)
 Duininck said hotels are balancing
economically prudent decisions with safety. He noted that many that
remain open have reported fewer reservations and more cancellations
than usual.
“What feels safe for me as a businessperson is different from people
that are coming down here to go to the job,” Duininck said, noting
that many employees in the hotel industry are non-white and fear
profiling from federal agents. On the other hand, many hotel owners
are trying to avoid intense economic retaliation from the federal
government or protesters.
That impossible choice embodies “exactly what the political moment
is for our city and for our country,” he said.
Economic leverage as protest strategy
Faith leaders, labor unions and activists are calling for residents
of the Twin Cities to not work, shop or go to school on Friday “to
demand immediate cessation of ICE actions,” according to the event's
website.
Boycotts and economic protests are a familiar tactic in the area.
Civil rights leaders in Minnesota were among some of the first
nationally to call for a full boycott of Target Corp. last year
after the retailer announced it would phase out a handful of
diversity, equity and inclusion initiatives following Trump's push
to dismantle DEI policies in the federal government and schools.
Last week, roughly 100 clergy protested at the entrance to Target’s
downtown Minneapolis headquarters to demand the retailer take a
stronger stand against federal law enforcement activity.
Videos have also shown demonstrators at Target locations in St. Paul
carrying signs calling for the abolition of ICE and accusing the
retailer of allowing federal law enforcement to stage operations on
its properties.
Legal protections in businesses
Anyone — including immigration enforcement officers — can legally
enter the public areas of a business. Those can include dining
areas, parking lots, office lobbies and store aisles. In those
places, immigration officials can question people, seize information
and even make arrests, according to John Medeiros, who leads the
corporate immigration practice at Minneapolis-based law firm Nilan
Johnson Lewis.
But workers and patrons have some legal protections. They can
decline to talk to immigration enforcement officers, refuse to
consent to searches or ask for an attorney.
ICE needs permission from the employer or a judicial warrant to
enter private spaces of a business, such as a back office or an
emergency room. A judicial warrant must be signed by a judge and
list a specific authorizing court. Those warrants can be limited to
specific days or types of information about the business. Experts
stress that it’s important to educate workers about their rights,
what areas of the business are private and how to differentiate
between warrants.
Immigration attorneys have raised alarm about ICE entering private
spaces without proper warrants and detaining people unlawfully.
Medeiros encourages people to record encounters with federal agents.
Help from neighbors offers temporary reprieve
Nimale said Taste of East African's economic challenges have been at
least temporarily offset by an outpouring of support from her
non-immigrant neighbors. Before the crackdown, she estimates that
close to 80% of her customers were Somali. Now, it's roughly 10%,
with new customers who are otherwise unfamiliar with that regional
cuisine filling in the gap despite the slower than usual service due
to a lack of employees.
Nimale said she is grateful for her neighbors' kindness but worries
it's far from a sustainable solution.
“We don't know how long we can get support,” she said.
___
Associated Press reporter Wyatte Granthan-Philips contributed
reporting.
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