Rising Costs and Tariffs Drive Hispanic Business Owners Away from GOP

Washington, Friday, 16 January 2026.
Recent data indicates a sharp reversal in political allegiance among Hispanic small business owners, a demographic critical to the Republican Party’s 2024 success. While Donald Trump secured 48% of the Hispanic vote in the last presidential election, his current favorability has plummeted to 28% amid growing economic distress. Business leaders in key regions like South Texas cite aggressive tariffs and labor shortages as primary drivers for this shift, with Laredo’s trade-dependent economy shrinking by 1% despite broader national trends. With over 70% of Hispanic entrepreneurs now ranking cost-of-living increases as their top concern, this dissatisfaction is already manifesting in local election losses for the GOP. As the 2026 midterms near, the administration faces a formidable challenge: the very economic policies intended to bolster American industry appear to be dismantling the coalition that returned them to power.