LA Riots Erupt After ICE Arrests Over 100 in Fashion District
The city of Los Angeles has descended into chaos following a massive wave of Immigration and Customs Enforcement (ICE) raids. At least 118 undocumented immigrants were arrested in LA’s Fashion District, sparking a rapid and volatile backlash from local communities. Protests quickly escalated into full-scale riots across Compton, Paramount, and South Central.
Looting, fires, and violent clashes with authorities have taken over the streets. Dozens of businesses have been ransacked, police cruisers set ablaze, and protesters have blocked major intersections with burning debris.
In a controversial and unprecedented move, President Donald Trump has deployed over 2,000 National Guard troops to Los Angeles—bypassing both Governor Gavin Newsom and Mayor Karen Bass. The move has triggered a nationwide debate over constitutional boundaries and federal overreach.
Legal experts argue the deployment may violate the Posse Comitatus Act, which limits military involvement in civilian law enforcement. Governor Newsom condemned the action as “a dangerous abuse of power” while federal officials insist it was necessary to restore order.
The riots have sent shockwaves through global financial markets:
The U.S. dollar fell 40 pips against the Japanese yen, hitting 144.45 as uncertainty loomed over U.S. political stability.
Insurance companies are bracing for millions in claims related to arson and looting.
Global investors, including Australian super funds, flagged LA as a high-risk zone for urban unrest with economic implications.
Economists warn that sustained riots could impact consumer confidence, disrupt local supply chains, and drive capital flight from the region.
Citywide curfews have been imposed as law enforcement attempts to contain the violence. Video footage shows gangs of looters storming retail stores, setting fires, and battling federal agents. Gas stations, convenience stores, and independent businesses have been among the hardest hit.
According to early estimates, property damage already exceeds $75 million, with some insurers calling it the most destructive unrest since the 1992 LA riots.
The deployment of federal troops into Los Angeles without state authorization sets the stage for a broader legal and political showdown. Civil liberties groups are preparing lawsuits, arguing that the president’s action undermines state sovereignty and may set a dangerous precedent for the future use of federal force in domestic matters.
Meanwhile, some lawmakers support Trump’s decision, citing national security and the need for swift action in the face of lawlessness.
The situation remains fluid. Local officials are urging calm, while community leaders warn of further escalation if tensions are not quickly deescalated. Economists, legal analysts, and political strategists agree: the riots may have long-term consequences for urban policy, financial confidence, and federal-state relations in the U.S.
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