Mexico Rejects US Tax on Remittances: Millions Affected

Mexico Rejects Proposed US Tax on Remittances Mexico City, May 17, 2025 – The Mexican government has voiced strong opposition to a proposed 5% tax on remittances sent from the United States to Mexico. This measure, initially suggested by US congress members, has been met with swift and decisive rejection by Mexican officials. Claudia Sheinbaum, head of government of Mexico City, described the proposal as "unacceptable and unconstitutional" during a press conference. She emphasized that such a tax would not only severely impact millions of Mexican families who rely on these funds but would also negatively affect the US economy. The Mexican government has formally communicated its opposition to the US Congress, highlighting the existing bilateral tax treaties that would be violated by this initiative. The rejection underscores the importance of remittances to the Mexican economy and the potential for significant economic and social disruption if the proposed tax were implemented. The Mexican government's strong stance suggests a potential diplomatic effort to prevent the tax from moving forward.