Fear of immigration operations is having a visible economic impact in a commercial area of Brooklyn, where seven out of ten small businesses surveyed reported a reduction in the number of customers entering their establishments.The data arises from an evaluation carried out by the Flatbush-Nostrand Junction Business Improvement District (BID) among 30 small businesses in that area of Brooklyn. The study found that 70% reported less customer traffic and 50% said their own consumers had expressed concern about the presence or actions of ICE.The report, published in July 2026, simultaneously analyzes the impact of tariffs and Immigration and Customs Enforcement (ICE) activities on small businesses. Their results show a commercial corridor under double pressure: higher costs and consumers who, out of fear, modify their daily habits.You can see: Latin immigrants denounce that they were deported by surprise to Africa without due processFear of ICE reduces movement in storesThe study was based on 30 structured in-person interviews with retail, restaurant, and professional services businesses in Flatbush–Nostrand Junction.Of the total, 77% were predominantly immigrant-owned and 83% were predominantly minority-owned. More than 70% of the businesses had been operating in the corridor for at least a decade.The results related specifically to immigration were compelling:The IDB also points out that some consumers are avoiding establishments near transportation centers, while others prefer to resort to deliveries or plan their visits before leaving home.You can see: New York allocates $7.25 million to defend unaccompanied immigrant childrenFewer sales and problems finding workersThe effect is not limited to the number of people who enter the premises. The owners interviewed described lower daily income and sales volume, reduced hours in some establishments and greater difficulties in retaining customers, according to the evaluation.Labor consequences also appear. 33% of businesses reported challenges related to their staff. Among the problems identified by the study are difficulties in recruiting and retaining workers, labor shortages that affect daily operations and businesses considering reducing their workforce.The evaluation does not establish that all of these workers are undocumented immigrants nor does it attribute each absence directly to an ICE operation. It does identify the fear related to immigration actions as one of the factors that are altering the daily functioning of these businesses.The problem is not limited to BrooklynThe phenomenon had already been pointed out by merchants from other areas of New York with a strong immigrant presence.In May, El Diario NY toured establishments in Jackson Heights and Corona, in Queens, where restaurant owners described months of low sales and mentioned, among other factors, the fear of their customers of encountering immigration agents in public spaces.In that area, merchants warned that the combination of inflation, high rents, higher operating costs and fear of immigration operations had weakened commercial movement.The new Flatbush study now adds quantitative data to a situation that until then was known primarily through the testimony of property owners and community organizations.Tariffs add further pressure on small businessesICE is not the only problem identified by the investigation. 90% of the businesses surveyed said that their suppliers' costs increased, while half acknowledged having transferred part of these increases to the prices paid by their customers.Some owners reduced inventories, sought alternative suppliers or delayed expansion and investment plans.This creates a particularly complex situation: establishments face higher costs precisely when a part of their clientele is reducing their visits.The impact of tariffs on small businesses has also been detected in larger studies. An analysis published in July by the New York Federal Reserve noted that small businesses, including retailers, can have significant exposure to higher costs of imported inputs even when they do not directly participate in international trade.Businesses ask for help to recover customersThe main demand of Flatbush merchants is economic. 87% called for greater access to low-interest loans and subsidies, while the same percentage called for clearer protocols on law enforcement. Another 37% considered investments in commercial corridor security a priority.The IDB is now proposing measures to regain consumer confidence, increase commercial activity and strengthen small businesses, through promotional campaigns, multilingual resources, financial assistance and support to improve the digital presence of establishments.The Flatbush–Nostrand Junction BID is an organization that works with property owners and merchants in the corridor and is part of the network of business improvement districts recognized by the City of New York.The organization believes that these small establishments are essential to the economic stability and identity of the neighborhood.The scope of the study, however, must be interpreted correctly: the survey includes 30 businesses in a specific Brooklyn corridor and its percentages cannot be extrapolated to all businesses in Brooklyn or New York.What it does offer is a concrete local photograph of a phenomenon that merchants from other immigrant neighborhoods have already been describing: when fear modifies the decision to go out, work or shop, the impact of immigration policy begins to be felt at the cash registers as well.