Trump's remittance tax hits Mexico's poorest

The families of Mexican migrants to the U.S. are bracing for the financial impact of a proposed 3.5-percent tax on remittances sent by non-U.S. citizens, as President Donald Trump's latest budget proposal moves through Congress.

Mexico is the second-largest recipient of U.S. remittances after India. Remittances of U.S. dollars represent around four percent of the country's GDP.

During the Biden administration, migrants from Hidalgo, a state in central Mexico where migration to the U.S. has long been a lifeline, sent over six billion dollars in remittances back home to help sustain families in this impoverished state.

Now, as Trump seeks a piece of that pie, family members of migrants say they would struggle to adjust.

"It's quite a lot, a lot, because it wouldn't be enough for anything anymore, honestly, not anymore. Things are going up quite a bit, so it wouldn't be enough for anything anymore. If it was half enough before, it's not enough now," said Agustina Godinez, a resident in Epazoyucan.

If the remittances tax, part of Trump's "big beautiful" budget bill, is implemented, Mexico stands to lose over 2.6 billion dollars annually.

The hardest-hit regions will be those most dependent on these funds, as the cost of sending the average 350-dollar remittance would jump significantly from around 5 dollars to 17 dollars.

Adding to the strain, banking data showed remittance volumes to Mexico have already dropped more than 12 percent this year, as migrant workers face harsher conditions in the U.S. under Trump's policies.

"We do have this feeling that if there were raids in a certain place, we say, I'd better go tomorrow or the day after, or whatever. But yes, it's affected us," said Pablo Salazar, a returning migrant.

Mexico's President Claudia Sheinbaum has condemned the proposed remittance tax, calling it unconstitutional.

As Trump tightens restrictions on migrant workers, his economic policies could end up hurting not just those in the U.S., but their families across the border who rely on every dollar sent home.

Trump's remittance tax hits Mexico's poorest

Trump's remittance tax hits Mexico's poorest

European Union (EU) countries gave final approval on Thursday to an amendment of the European Climate Law, setting a binding intermediate target to cut the bloc's net greenhouse gas emissions by 90 percent by 2040 compared with 1990 levels, reinforcing the EU's path toward climate neutrality by 2050.

Under the amended law, from 2036 EU member states will be allowed to count "high-quality international credits" towards meeting the 2040 target, capped at 5 percent of the EU's 1990 net emissions. This means at least 85 percent of the emissions reductions must be achieved within the bloc, the Council of the EU said in a statement.

The credits must be based on credible greenhouse gas reduction activities in partner countries and be aligned with the Paris Agreement, the statement added.

The amended law also delays the launch of the EU's emissions trading system covering road transport, buildings and other sectors, shifting its start date from 2027 to 2028.

The adoption of the amendment marks the final step in the legislative process. The amended regulation will enter into force 20 days after its publication in the Official Journal of the EU and will apply directly across all EU member states.

The European Climate Law was first adopted in 2021, setting a legally binding target of climate neutrality by 2050 and a 2030 goal to cut net emissions by at least 55 percent from 1990 levels.

EU countries approves 2040 target to cut net emissions by 90 pct