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Minneapolis businesses struggle during Trump's immigration enforcement surge

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Minneapolis businesses struggle during Trump's immigration enforcement surge
News

News

Minneapolis businesses struggle during Trump's immigration enforcement surge

2026-01-22 07:20 Last Updated At:07:30

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.

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.

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.

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.

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.

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.

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.

A view of the 24 Somali Mall in Minneapolis, Thursday, Jan. 15, 2026. (AP Photo/Abbie Parr)

A view of the 24 Somali Mall in Minneapolis, Thursday, Jan. 15, 2026. (AP Photo/Abbie Parr)

A sign is taped to the outside of the 24 Somali Mall in Minneapolis, Thursday, Jan. 15, 2026. (AP Photo/Abbie Parr)

A sign is taped to the outside of the 24 Somali Mall in Minneapolis, Thursday, Jan. 15, 2026. (AP Photo/Abbie Parr)

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)

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)

Congressional Republicans moved closer Wednesday to lifting a 20-year ban on mining near Minnesota's Boundary Waters Canoe Area Wilderness, pushing a resolution to end the moratorium through the House despite environmentalists' warnings that it could devastate a premier destination for campers, kayakers and canoeists.

The resolution now goes to the Senate, and approval there would send it to President Donald Trump for his signature.

The push to end the ban comes as a Chilean mining company considers opening a copper mine in the Superior National Forest on the edge of the wilderness area that conservationists say could contaminate the watershed.

“Minnesota's Boundary Waters is one of our nation's most iconic wilderness areas,” Jackie Feinberg, the Sierra Club's national lands conservation campaign manager, said in a statement. “This push by the Trump administration and their Congressional allies to allow toxic mining in the Boundary Waters watershed puts this fragile ecosystem at risk, and is a clear giveaway to corporate polluters.”

Boundary Waters is a vast swath of remote woods, lakes and swamps in the Superior National Forest in far northeastern Minnesota, stretching for about 150 miles (about 240 kilometers) along the border with Canada.

It remains largely untouched by humans; logging is prohibited, planes must stay above 4,000 feet (1,220 meters) as they fly over it, except in emergencies, and motorized boats are limited to certain areas.

The promise of serenity has drawn campers, hikers, kayakers and canoeists for decades. The U.S. Forest Service issued about 776,000 visitor permits between 2020 and 2024, according to agency data.

Part of the Superior National Forest is situated on the Duluth Complex, a rock formation that contains deposits of copper, nickel, lead, zinc, iron, silver and gold, according to the Forest Service.

Twin Metals Minnesota LLC, a subsidiary of Chile-based Antofagasta Minerals, submitted a plan with the U.S. Department of the Interior in 2019 proposing to mine copper, nickel, cobalt and other precious metals in the forest.

President Joe Biden's administration blocked the project in 2023, imposing a 20-year moratorium on mining on about 400 square miles (103,600 hectares) in the forest, saying that was necessary to protect the watershed and canoe wilderness.

The president has sought to bolster domestic energy and mineral production, declaring an energy emergency just days after retaking office a year ago. Last fall his administration reinstated a 2017 legal opinion that allowed Twin Metals to renew its leases in the Superior National Forest, and Minnesota regulators approved its exploratory mining plans in December.

This month U.S. Rep. Pete Stauber, a Duluth Republican, introduced the resolution to lift the Biden-era moratorium, saying it has cost jobs, put the nation's mineral security at risk and is “an attack on our way of life.”

Republicans said on the House floor that they must open the door to mining near the canoe area to compete with China and Russia in the race for key minerals such as cobalt, copper and nickel. Stauber, almost shouting at times, called the moratorium “a dangerous, purely political decision.”

“It's better in our backyard than in China or Russia or other adversarial nations,” he said.

Democrats painted mining as an existential threat to the wilderness and said any minerals extracted would just be sold on the international market anyway.

“Some places are just too precious to mine,” said Betty McCollum, a Minnesota Democrat.

Stauber brought the resolution under the Congressional Review Act, which allows lawmakers to overturn certain actions by federal agencies.

Democrats argued that the resolution was out of order because Republicans had to bring it within 60 days of the ban's implementation, not three years later, and such resolutions cannot be used to erase public land protections. They said approving it would set a dangerous precedent.

Republicans countered that the Biden administration failed to formerly notify Congress of the ban in 2023.

The House ultimately approved the resolution on a 214-208 vote. One Republican, Don Bacon of Nebraska, voted against it, and one Democrat, Jared Golden of Maine, voted for it.

Matthew Schultz, a spokesperson for Sportsmen for the Boundary Waters, said Bacon’s vote resolution shows that the issue does not break down along party lines.

“The hunting, fishing, angling and outdoor community wants to see this place protected, plain and simple,” Schultz said. “No matter who you voted for, nobody voted for less public lands and less access to them. Without a shadow of a doubt, should this pass through the Senate, that is what will happen.”

It is not clear when or if the Senate, where Republicans hold 53 of the chamber's 100 seats, will take it up.

Associated Press writer Doug Glass contributed.

In this undated image provided by Minnesota Public Radio, Sept. 2, 2016, canoeists navigate the Pocket River in the Boundary Waters Canoe Area Wilderness near Ely, Minn. (Nathaniel Minor/Minnesota Public Radio via AP, File)

In this undated image provided by Minnesota Public Radio, Sept. 2, 2016, canoeists navigate the Pocket River in the Boundary Waters Canoe Area Wilderness near Ely, Minn. (Nathaniel Minor/Minnesota Public Radio via AP, File)

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