A 1 percent tax on remittances sent from the United States to Mexico and other countries has come into effect since Jan 1, part of President Donald Trump's One Big Beautiful Bill.
This new policy means that many international money transfers, particularly those involving cash, money orders and cashier's checks, will be subject to a 1 percent tax. However, senders who use a U.S. bank account or U.S.-issued debit or credit cards will be exempt from the tax.
Undocumented migrants, who often do not have bank accounts, are expected to be the most affected by this change. Therefore, this policy is a huge blow to workers who depend on their earnings in the U.S. to support their families back in their home countries. Remittances play a crucial role in helping families cover basic necessities, invest in education and access healthcare services.
In 2023, remittances to the Global South reached an estimated 656 billion U.S. dollars, more than double the 224 billion dollars governments worldwide sent in foreign aid.
Mexico, the U.S. southern neighbor, is likely to be the hardest hit, with projections estimating a loss of about 1.5 billion U.S. dollars annually, according to the Center for Global Development.
While this policy is expected to bring in about 10 billion U.S. dollars in revenue over the next decade, that's just a tiny fraction of the total U.S. budget, according to analysts.
1 pct tax on remittances from US takes effect on Jan 1
The recent 2026 Zhongguancun Forum (ZGC Forum) Annual Conference in Beijing has impressed international guests with its focus on deeper integration of technological and industrial innovation, highlighting how China's innovative advances are reshaping daily life.
The five-day forum, themed "Full Integration Between Technological and Industrial Innovation," wrapped up in Chinese capital on Sunday after bringing together more than 1,000 participants from over 100 countries and regions around the world.
More than 560 cutting-edge achievements were unveiled at the event, ranging from embodied intelligent robots and brain-computer interfaces to breakthroughs in quantum applications and 6G research and development.
The venue for the forum also showcased a number of these innovative creations to visitors, who were able to enjoy a fresh cup of coffee prepared by a humanoid barista, as well as be throughly entertained by robots performing dances or even playing piano.
Given the presence of these advanced humanoid robots, international participants shared the common view that innovation is no longer confined to laboratories but is now permeating every aspect of daily life.
"The deepest impression is actually to see how much AI is across everywhere," said Anders Karlsson, vice president of Elsevier, a global leader providing advanced information and decision support to accelerate progress in science and healthcare worldwide.
"The Zhongguancun Forum has become a very international window on innovation. We can find out annually how innovation is driving [and a key] component of growth of this wonderful country," said Vincenzo Lipardi, president and co-founder of SPICI, an Italian company assisting businesses and startups with strategic consulting services.
"As a scientist and as a worker of the United Nations system, I'm really pleased to see integration of science, technology and sustainability," said Shahbaz Khan, director of the UNESCO Regional Office for East Asia.
One of the forum's key themes was around opening up and striving for greater cooperation, which demonstrated to the wider world that China's innovation aims to break down barriers and share opportunities, so as to enable the global community to advance together.
"It's my first time attending the forum. And I'm very surprised that you have a very high level of innovation. China is open to ideas. Openness is the way to make innovations," said Prof. Hussein Sherief, a member of the International Committee for Scientific and Technical Data (CODATA).
Int'l guests hail integration of technology, innovation at Beijing forum
