Decline in Remittances Signals Crisis for Families
Submitted by MAGA
Posted 14 hours ago
In a revealing shift of political tides, recent statistics indicate that remittances to Mexico have plummeted significantly, highlighting the profound implications of U.S. economic policies under President Donald Trump.
In April 2025, remittances dropped 12.1% compared to the previous year, marking the steepest decline since September 2012.
This downward trend raises crucial concerns as families in Mexico depend heavily on these funds, which totaled nearly $65 billion last year—amounting to about 4% of Mexico's GDP.
President Claudia Sheinbaum of Mexico has voiced alarm over this issue, attributing the decline to various factors, including fears among the undocumented immigrant population regarding deportation and tight immigration enforcement in the U.S.
At the heart of the discussion lies a proposed 3.5% tax on remittances included in the House version of Trump's “One Big Beautiful Bill.”
This tax could potentially siphon off an estimated $22.2 billion from the already strained income streams of countless families who rely on these funds for essential needs like food, shelter, and healthcare.
Grassroots activists in the U.S. are mobilizing against this tax, emphasizing the monumental impact on working-class families: "These are not luxury transfers. They are modest amounts used to cover food, medicine, and shelter," they argue.
Taxing these vital remittances risks compounding the challenges faced by families already grappling with economic uncertainties.
Notably, opponents warn that diminishing remittances could inadvertently lead to increased illegal immigration, as desperate families may feel compelled to seek opportunities across the border.
The interdependence of U.S.-Mexico economic ties cannot be overstated, particularly in the energy sector, where trade relations have grown increasingly integrated.
Under Trump’s previous administration, a focus on energy independence transformed U.S. economic strategy, steering clear of reliance on adversarial nations like China.
Experts argue that maintaining healthy energy trade relations with Mexico is crucial for both nations, particularly as the U.S. seeks to "friend-shore" its supply chains to enhance security and stability.
In context, while the narrative surrounding immigration and economic policy remains complex, it is evident that prudent approaches to remittances and trade can facilitate healing and growth, emphasizing the need for an economic strategy that supports families on both sides of the border.
As the Trump administration navigates these currents, a thoughtful approach to remittance policy could uphold the historic bonds between the U.S. and Mexico while fostering growth amidst these pressing challenges.
Sources:
zerohedge.com
humanevents.com
theepochtimes.com
In April 2025, remittances dropped 12.1% compared to the previous year, marking the steepest decline since September 2012.
This downward trend raises crucial concerns as families in Mexico depend heavily on these funds, which totaled nearly $65 billion last year—amounting to about 4% of Mexico's GDP.
President Claudia Sheinbaum of Mexico has voiced alarm over this issue, attributing the decline to various factors, including fears among the undocumented immigrant population regarding deportation and tight immigration enforcement in the U.S.
At the heart of the discussion lies a proposed 3.5% tax on remittances included in the House version of Trump's “One Big Beautiful Bill.”
This tax could potentially siphon off an estimated $22.2 billion from the already strained income streams of countless families who rely on these funds for essential needs like food, shelter, and healthcare.
Grassroots activists in the U.S. are mobilizing against this tax, emphasizing the monumental impact on working-class families: "These are not luxury transfers. They are modest amounts used to cover food, medicine, and shelter," they argue.
Taxing these vital remittances risks compounding the challenges faced by families already grappling with economic uncertainties.
Notably, opponents warn that diminishing remittances could inadvertently lead to increased illegal immigration, as desperate families may feel compelled to seek opportunities across the border.
The interdependence of U.S.-Mexico economic ties cannot be overstated, particularly in the energy sector, where trade relations have grown increasingly integrated.
Under Trump’s previous administration, a focus on energy independence transformed U.S. economic strategy, steering clear of reliance on adversarial nations like China.
Experts argue that maintaining healthy energy trade relations with Mexico is crucial for both nations, particularly as the U.S. seeks to "friend-shore" its supply chains to enhance security and stability.
In context, while the narrative surrounding immigration and economic policy remains complex, it is evident that prudent approaches to remittances and trade can facilitate healing and growth, emphasizing the need for an economic strategy that supports families on both sides of the border.
As the Trump administration navigates these currents, a thoughtful approach to remittance policy could uphold the historic bonds between the U.S. and Mexico while fostering growth amidst these pressing challenges.
Sources:
zerohedge.com
humanevents.com
theepochtimes.com
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