Highlandtown Businesses Suffer as Immigration Enforcement Rises

Owners report fewer customers, worker uncertainty in Baltimore neighborhood

Mar. 27, 2026 at 1:58am

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Business owners in Baltimore's Highlandtown neighborhood say they are feeling the economic effects of increased federal immigration enforcement, with some reporting fewer customers and growing uncertainty among workers. Several businesses have already closed, and those still open are struggling to maintain normal operations.

Why it matters

Highlandtown is known for its diverse immigrant population, and the decline in business activity highlights the broader economic impact that stricter immigration policies can have on local communities. As immigrants make up a significant portion of Maryland's workforce, especially in essential sectors, the effects of decreased participation could be far-reaching.

The details

At Castillo and Villegas Boutique on Eastern Avenue, the once-bustling salon now has empty chairs as foot traffic has declined. Owner Katherine Castillo, a U.S. citizen, says the slowdown has become more noticeable in recent weeks, with fewer customers and employees wary of coming to work when they see suspicious vehicles outside. Other nearby businesses have also permanently closed.

  • In recent weeks, Castillo and Villegas Boutique has seen a slowdown in business.
  • Maryland Comptroller Brooke Lierman recently addressed the impact of immigration enforcement during a press briefing with state lawmakers.

The players

Katherine Castillo

Works at the salon that her mother owns in Highlandtown.

Brooke Lierman

Maryland Comptroller who addressed the impact of immigration enforcement on the state's workforce.

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What they’re saying

“We used to have three or four people here ready to cut hair, do nails, massages. Now, we have enough that one or two people can maybe get a couple cuts a day, but even then, sometimes, our own employees are wary about coming out when they see a suspicious truck outside.”

— Katherine Castillo, Salon employee

“Our strength as a state depends on the full participation of our workforce. Supporting that participation and supporting our small businesses cannot just be a community priority. It has to be a core economic and fiscal priority for the state.”

— Brooke Lierman, Maryland Comptroller

The takeaway

This case highlights the significant economic impact that stricter immigration enforcement can have on local communities, particularly those with large immigrant populations. As immigrants make up a substantial portion of Maryland's workforce, especially in essential sectors, the effects of decreased participation could be far-reaching and require a coordinated state-level response to support small businesses and maintain economic stability.