Following the early morning approval on Thursday of the U.S. Tax Bill proposed by President Donald Trump—which includes a tax on remittances sent abroad—Mexican President Claudia Sheinbaum Pardo said Mexico will continue efforts to ensure this tax is eliminated.
During her morning press conference, the President emphasized that although lawmakers reduced the remittance tax rate from 5% to 3.5%, more work remains, as the tax bill now moves to the U.S. Senate.
In this context, she thanked Mexico’s ambassador to the United States, Esteban Moctezuma, and Mexican senators for their support in opposing this form of double taxation.
“For now, the remittance tax rate has been reduced from 5% to 3.5%. Nonetheless, we don’t want there to be any tax at all, so we will continue working and informing everyone. Still, this reduction is worth recognizing, and we will keep pushing so that there is no tax on the remittances our fellow Mexicans send to their families,” said President Sheinbaum.
The President also noted that she will continue engaging with both Republican and Democratic senators to explain the harmful effects of a tax on remittances.
“We will keep speaking with both Republican and Democratic senators, explaining why this remittance tax is not good for our country,” she stressed.
Sheinbaum reminded the public that reducing or eliminating the tax is not only crucial for Mexico, where remittances account for about 3% of GDP, but also for Central American countries where such money transfers represent up to 20% of GDP.
“This is important for all countries, even for India, but in reality, Mexico is the only one actively speaking with members of Congress, working with organizations in the United States, and our fellow citizens have been sending letters, emails, and posting on social media,” said the Mexican president.
“We will keep working on this issue so that there is no remittance tax, especially on Mexico, because there’s also an agreement that establishes that there should be no double taxation—this tax is discriminatory. Still, it’s positive that the rate has been reduced from 5% to 3.5%,” she added.
On another note, Sheinbaum reported that she had a phone call this morning with her U.S. counterpart, Donald Trump. While they did discuss the remittance tax, the focus was on trade issues, including tariffs on steel, aluminum, and the automotive sector.
“Tomorrow, the Minister of Economy will travel to Washington, D.C., for a meeting. We are continuing discussions on trade issues—nothing specific yet—but we’re negotiating with good relations and communication,” the President emphasized.
This was the seventh call with the U.S. president, which she described as cordial, and noted that another conversation will take place soon.
“We are mainly continuing the discussion on trade and tariffs. Remember that Mexico currently holds a very favorable position in the automotive sector—though we would like even better terms—and we are still working on issues related to steel and aluminum. There were a few other topics raised, but I’d prefer not to go into detail until we reach an agreement,” she said.
Sheinbaum clarified that there are no talks yet about a USMCA renegotiation, as it is still too early. However, she mentioned that Minister of Economy Marcelo Ebrard has been in conversations with his counterparts. “We haven’t reached that point yet,” she concluded.
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Mexican Press Agency is part of ALMA, which is dedicated to news and information about Mexico and Mexicans in the United States and is a fiscally sponsored project of Social Focus, a 501(c)(3) nonprofit organization based in Redwood City, California.
