Mexico rejects US proposal to tax remittances

Mexico has strongly opposed the United States proposal of imposing a 5 percent tax on remittances made by non-citizens, calling it unfair and unjustified. Foreign Minister Juan Ramon de la Fuente stated that the government will take political and legal action against the initiative introduced on May 12 in the United States House of Representatives, according to Xinhua.

Following President Claudia Sheinbaum’s directive, a letter rejecting the measure was sent to US lawmakers by Ambassador Esteban Moctezuma and Foreign Ministry official Roberto Velasco.

Mexico emphasized that the tax would unfairly target migrants who already contribute to the US economy. Remittances are a key source of income for millions of Mexican families, totaling $64.7bn in 2024.