What Immigrant Workers’ Loss of Legal Status Mean for Their Employers

Summary

WSJ "What’s News" Podcast Summary

Episode Title: What Immigrant Workers’ Loss of Legal Status Mean for Their Employers
Release Date: May 28, 2025
Host: Alex Zosalev
Produced by: Anthony Bansi, Pierre Bienname, Michael Cosmides

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1. Introduction

In this episode of WSJ's "What’s News," host Alex Zosalev covers a spectrum of pressing topics, ranging from political critiques and economic policies to the significant implications of potential changes in immigrant workers' legal status on U.S. businesses.

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2. Elon Musk Criticizes President Trump's Tax and Spending Bill

Timestamp: [00:43] – [02:04]

Elon Musk has joined the chorus of critics targeting the Republican multi-trillion-dollar tax and spending agenda. In an excerpt from a recent interview with CBS Sunday Morning, Musk stated that the current tax bill "failed to reduce the federal deficit and undermined cost-cutting undertaken by his Department of Government Efficiency" [00:43]. This criticism adds fuel to the existing opposition against the bill, which narrowly passed the House last week and now awaits Senate deliberation.

When questioned about Musk's stance, President Trump responded by framing it as part of standard negotiation tactics. He remarked, “It's called negotiation. You set a number and if you go down... I said, where are we now? We're at 145%” [02:04], referring to the steep tariffs imposed and defending their necessity in combating issues like fentanyl distribution.

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3. President Trump Defends Tariffs Amid Criticism

Timestamp: [02:04] – [02:30]

Trump addressed accusations that he retracts tariff commitments, emphasizing that the adjustments are part of strategic negotiations. He explained the rationale behind maintaining high tariffs, citing national security concerns and trade imbalances: “You set a number and if you go down... We're at 145%” [02:04]. This defense underscores Trump's commitment to using tariffs as a tool to protect American industries.

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4. Mary Barra Supports Trump's Tariff Policies

Timestamp: [02:30] – [03:18]

General Motors CEO Mary Barra expressed support for President Trump's tariff strategies during an interview at the Future of Everything event. Barra highlighted the challenges U.S. automakers face in the global market, attributing disadvantages to "foreign government subsidies and taxes" [02:51]. She argued that tariffs could serve as a means to "level the playing field" for American car brands, emphasizing the importance of maintaining strong domestic manufacturing capabilities.

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5. Federal Reserve's Cautious Stance on Tariffs and Inflation

Timestamp: [03:18] – [05:06]

Recent minutes from the Federal Reserve’s May meeting reveal concerns among officials that increased tariffs might elevate consumer prices and fuel inflation. Policymakers concurred that the heightened economic uncertainty and the risks of both higher unemployment and inflation justify maintaining a "wait and see" approach rather than implementing immediate policy changes [03:18].

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6. Nvidia's Remarkable Revenue Growth Despite Market Challenges

Timestamp: [05:06] – [06:06]

Amidst fluctuating stock markets and trade tensions, Nvidia reported a substantial fiscal first-quarter revenue of approximately $44 billion, marking a 69% increase year-over-year [04:10]. Notably, its data center business, pivotal for AI computing systems, surged by 73% to around $39 billion [04:20]. This growth persists even as Nvidia faces restrictions in exporting advanced AI chips to China, highlighting the company's robust position in the AI and technology sectors.

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7. Deep Dive: Impact of Immigrant Workers’ Loss of Legal Status on Employers

Timestamp: [05:38] – [08:53]

Guest: Ruth Simon, WSJ Senior Special Writer

Alex Zosalev delves into the critical issue of immigrant workers potentially losing their legal status and the repercussions for their employers. In an interview conducted with Ruth Simon, insights from her visit to Mills Manufacturing in North Carolina are presented.

• Workforce Composition: Approximately one-third of Mills's employees are U.S.-born, with the remaining two-thirds being immigrants. A significant concern is a subset of about a quarter of these immigrant workers who currently hold temporary legal status through various programs. These protections are under threat, primarily due to the Trump administration's push to revoke such statuses [06:06].

• Potential Workforce Gap: Ruth Simon emphasizes that the loss of legal status could create substantial gaps in the workforce. She notes, “These types of workers with these legal protections are employed all around the country… they could be left with gaps in their workforce if they aren't” [06:55]. For a company like Mills, which manufactures troop parachutes for the U.S. Military, this could mean operational disruptions and challenges in meeting production demands.

• Business Implications: John Oswald, head of Mills Manufacturing, expressed grave concerns about the potential workforce reduction. He warned, “If they lose all these workers, they would have to go back to the military and say, what do you want us to prioritize... It would require some tough choices” [07:42]. The process of finding and training new workers would be time-consuming and might not fully bridge the gap left by departing employees.

• Company Responses: In anticipation of these challenges, Mills has engaged local immigration groups to assist affected workers in exploring options for achieving permanent legal status. Additionally, Oswald has been actively lobbying for comprehensive immigration reform, including efforts in Washington, D.C., to mitigate the impact on their operations [08:18].

Ruth Simon concludes that while companies like Mills are striving to support their immigrant workforce and seek legislative solutions, the uncertainty surrounding immigration policies poses significant risks to their productivity and sustainability [08:53].

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8. Macy's Adapts to Tariff Pressures

Timestamp: [08:53] – [09:56]

Macy's reported that current shoppers are increasing their purchases compared to March and April in an effort to preempt the impact of ongoing global tariffs. The department store chain is implementing several strategic adjustments, including raising prices on select items, renegotiating vendor agreements, and diversifying its inventory sourcing to mitigate tariff-induced costs. Despite a 5.1% decline in first-quarter sales to $4.6 billion, Macy's performance surpassed analyst expectations. However, the company has revised its full-year earnings guidance downward, citing challenges from global tariffs and slowing consumer spending [08:53].

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9. Broadband Access Overhaul in Rural America

Timestamp: [09:56] – [10:49]

Patience Hagan discusses the Department of Commerce's plans to revamp a broadband access program initially established during the Biden administration. The original framework favored fiber optic expansion, mandating fiber deployment unless excessively costly, with satellite Internet as an alternative ([09:56]). Under the Trump administration's proposed reforms, the program aims to become more tech-neutral, potentially increasing support for satellite Internet solutions. This shift has left state broadband offices in uncertainty, with many awaiting new guidelines while some reconsidering their existing plans to align with the updated federal approach [09:56].

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10. Conclusion

Alex Zosalev wraps up the episode by highlighting the interconnectedness of political decisions, economic policies, and their tangible impacts on businesses and industries across the United States. From the high-stakes arena of taxation and tariffs to the nuanced challenges faced by immigrant workers and major corporations, the episode underscores the delicate balance policymakers must maintain to foster economic stability and growth.

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For more detailed insights and ongoing coverage, listeners are encouraged to visit the Wall Street Journal’s website and tune into future episodes.

Transcript

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[Alex Zosalev]

Elon Musk joins critics of President Trump's tax and spending bill. Plus what the loss of legal status of immigrant workers could mean for their employers.

[Ruth Simon]

It could potentially leave a huge hole in their workforce. These types of workers with these legal protections are employed all around the country. They work for big companies, they work for small employers.

[Alex Zosalev]

And Nvidia sales soar as demand for AI chips surges. It's Wednesday, May 28th. I'm Alex Zosalev for the Wall Street Journal. This is the PM edition of what's News, the top headlines and business stories that move the world today. Elon Musk has given new fuel to critics of the Republicans multi trillion dollar tax and spending agenda. In excerpts released Tuesday night from an interview with CBS Sunday Morning, Musk said the tax bill failed to reduce the federal deficit and undermined cost cutting undertaken by his Department of Government Efficiency. The bill narrowly passed the House last week and now heads to the Senate, where some fiscal hawks have demanded deeper cuts. Asked about Musk's criticism, Trump alluded to the thin Republican majority in the House and said negotiations were continuing. Separately, President Trump rejected claims that he's backing down on tariffs in the Oval Office. Today, the president was asked about a new saying from Wall street analysts that Trump always chickens out after he had imposed high duties.

[Donald Trump]

It's called negotiation. You set a number and if you go down, you know, if I set a number at a ridiculous high number and I go down a little bit, you know, a little bit, they want me to hold that number. 145% tariff even. I said, man, that really got up. You know how it got because of fentanyl and many other things. And you added it up. I said, where are we now? We're at 145%. I said, whoa, that's high.

[Alex Zosalev]

Meanwhile, General Motors CEO Mary Barra voiced support for President Trump's tariffs, saying U.S. automakers face unfair disadvantages in the global marketplace. In an interview with Wall Street Journal Editor in Chief Emma Tucker at the Future of Everything event, Barra said foreign government subsidies and taxes put American car brands at a disadvantage.

[Mary Barra]

I can't speak to all the other industries that are facing tariffs, but I can tell you for decades now it has not been a level playing field for US Automakers globally with either tariffs or non tariff trade barriers. So I think tariffs is one tool that the administration can use to level the playing field and I also think it's important. Maybe I grew up in manufacturing at General Motors, but I think having strong manufacturing capability in this country is also important.

[Alex Zosalev]

You can follow the WSJ Future of Everything event on our website. We'll leave a link in the show. Notes at their meeting earlier this month, Federal Reserve officials signaled concern that large tariff hikes would push up prices and could risk stoking higher inflation. According to minutes from the May 6th and 7th meeting released today, policymakers largely agreed that heightened economic uncertainty and increased risks of both higher unemployment and inflation warranted no change in their wait and see policy. A day after the Big three US Indexes surged today, stocks ticked lower. Both the Dow and The S&P 500 fell about 0.6%, and the Nasdaq slipped roughly half a percent with a lull in trade war news, Nvidia has the spotlight, and its business is still booming, even with the company effectively shut out of one of the world's largest markets for advanced artificial intelligence chips. Today, Nvidia reported about $44 billion in revenue for its fiscal first quarter, which accounted for the inability to ship two and a half billion dollars of chips to the Chinese market. The total revenue is up 69% from the same period last year and slightly ahead of Wall Street's expectations for the quarter that ended in April. More crucially, the company's data center business, which includes chips and other components used in AI computing systems, saw revenue surge 73% year over year to roughly $39 billion. Coming up, what a rollback of temporary legal protection of migrant workers could mean for U.S. businesses. That's after the break.

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[Alex Zosalev]

We've talked before on the show about the role that migrants play in the workforce, how companies could be affected if the Trump administration goes ahead with deporting them. One of the companies that would be affected is one of only two that are qualified to make troop parachutes for the US Military. WSJ senior special writer Ruth Simon is here now with more. So, Ruth, you went to North Carolina to visit Mills Manufacturing. How important are immigrant workers to their operations?

[Ruth Simon]

So Mills has quite a lot of workers who are immigrants. About a third of their workers are US Born, and the rest of them are immigrants. What we're talking about here is one subset of the group, which is about a quarter of their workers who are legally allowed to work in the US but they have a temporary status. There are different programs that have allowed people to come to the US and given them the right to work legally and, and live here legally. But those protections for that group of workers could be going away.

[Alex Zosalev]

Many of these legal protections have come under fire from the Trump administration, which means these employees are at risk of losing their legal status and risking deportation. What would that mean for businesses like Mills?

[Ruth Simon]

It could potentially leave a huge hole in their workforce. These types of workers with these legal protections are employed all around the country. They work for big companies, they work for small employers. And now I know in the case of Mills and some of the other companies I've spoken with, they're trying to figure out how they can help these workers achieve some sort of permanent legal status. That's a hard process. It's time consuming, and there's no guarantee. These are companies that are trying to employ workers who are legally allowed to work in the US they want to find ways for them to legally stay, but they could be left with gaps in their workforce if they aren't.

[Alex Zosalev]

And what could that mean for their output, their business?

[Ruth Simon]

What John Oswald, who runs the company, said to me is if they lose all these workers, they would have to go back to the military and say, what do you want us to prioritize? This is a very complicated operation. They wouldn't be able to get all their work done. And so it would require some tough choices. And it would also take quite some time for the company to recover because they would have to find more workers. They would have to train those workers to. Those workers would have to get up to speed.

[Alex Zosalev]

So given this prospect, what are companies, including Mills, doing to prepare?

[Ruth Simon]

In the case of Mills, they've brought in a local immigration group to talk to their workers about what their options are. The head of Mills has lobbied for immigration reform. He's been to Washington, D.C. and is trying to call attention to the problem. I think they're also hoping and praying that they won't have this problem because it's a big one and it's going to be a hard nut for them to crack.

[Alex Zosalev]

That was WSJ senior special writer Ruth Simon. Thank you, Ruth.

[Ruth Simon]

Pleasure to speak with you.

[Alex Zosalev]

Macy's said today that its shoppers are buying more this month than they did in March and April to get ahead of the effect of tariffs. The department store chain is raising prices on some items, renegotiating vendor agreements and shifting its inventory sourcing to ease the brunt of global tariffs. The retailer said that as of February 1, about a fifth of its products came from China. In its earnings report today, Macy said that sales in the first quarter fell 5.1% to $4.6 billion, topping analysts estimates it also cut its full year earnings guidance due to global tariffs and moderating consumer spending. And some 24 million Americans who live in rural places lack reliable broadband Internet now. Many of them may soon get another satellite Internet reporter Patience Hagan told our Tech News Briefing podcast how the Commerce Department plans to overhaul a Biden era broadband access program to make it more tech neutral, potentially increasing support for satellite Internet.

[Patience Hagan]

This program was designed to bring broadband high speed Internet to every location in the country that still doesn't have it, and under the Biden administration, it was expected to favor fiber. The Biden administration designed the program's rules in a way that said you had to build fiber cables to every location unless it was too expensive. Then you could turn to other technologies like satellite. So satellite was expected to be part of the mix and receive some of the funding under the Biden administration. But now with the reforms that the Trump administration is talking about, it looks poised to receive a lot more of this funding. So we're all waiting to find out when the new guidance comes. Virtually every state broadband office is in a holding pattern right now. Some states that had their plans all written up still can't get their funds, and other states are paused and wondering whether they'll have to rewrite their plans for the new guidance.

[Alex Zosalev]

For more from patients, listen to tomorrow's episode of Tech News Briefing. And that's what's news for this Wednesday afternoon. Today's show is produced by Anthony Bansi and Pierre Bienname with supervising producer Michael Cosmides. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.