US EditionTrump’s new remittance tax leaves migrants loopholes
- In 2025, President Donald Trump introduced legislation that enforces a 3.5% levy on money sent abroad by non-citizens residing in the United States.
- This tax, reduced from an initial 5% rate, aims to curb dollar outflows amid the US leading global remittances of $656 billion in 2023 but has drawn criticism for targeting migrants.
- Experts warn the tax could disproportionately burden poor Central American migrants and prompt informal transfers via citizens sending money, cryptocurrencies, or black-market mules.
- Andrew Selee from Migration Policy Institute said, "It is essentially a tax on the very poor," while Mexico and other countries face varied economic impacts due to their reliance on remittances.
- The tax passed the House and will apply from January 1, 2026, potentially lowering migrants' remittance volumes and affecting recipient economies amid ongoing political and economic uncertainties.
22 Articles
22 Articles
Trump's 'Big, Beautiful' Bill Hits Migrants With New Remittance Tax — Experts Say It Could Fuel Black Market And Hurt America's 'Very Poor'
New tax on remittance transfers from non-citizens in the US is facing criticism for unfairly impacting poor migrants and hindering formal remittance systems.
3.5% Tax on Remittances: Self-Service Stores Will Be the Most ‘Grown Over’ in Mexico · Global Voices
The intention of the President of the United States, Donald Trump, to tax with 3.5 percent the remittances sent from the United States to Mexico would generate a significant impact on the purchasing power of millions of Mexican families and would directly affect the self-service chains and stores receiving these shipments.This rate would add to the current charge of between 5 and 10 percent that already charge transfer services such as Western U…
96% of Mexico's Remittances Hit: the Consequences of the U.S. Tax, in Six Graphs
The proposal to impose 3.5% taxes on remittances advanced in the U.S. Lower House. This measure could affect about 14% of the U.S. population, made up of people born in other countries, regardless of their immigration status. Latin America is one of the regions of the world that would suffer the effects of the measure, since a large part of its migrants chose the United States as their destination, where more than 65 million Latin Americans live…
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