Remittances from foreign workers in US to Mexico plummet to lowest levels since 2012 amid immigration crackdown

Per BBVA Research, this total marks a 16.2 percent decline from June 2024, and is the largest drop in remittances since September 2012. June saw just over 12.7 million remittance transactions to Mexico, which is down 14.3 percent from June 2024.

The research group noted that in the first half of 2025, 99 percent of remittances were sent to Mexico through electronic transfers, 79.5 percent of which were made through non-bank institutions. 51.1 percent of remittances sent to the country were collected in cash. "With this information, it is not possible to determine what proportion of remittances would be subject to the new 1% tax imposed by the United States," BBVA Research stated.

The One Big Beautiful Bill, signed into law in July, applied a one percent tax to remittances. The sender of the remittance is responsible for paying the tax. According to the World Bank, $98.42 billion was sent in remittances from the US to other countries in 2024. Mexico reported receiving $64.74 million in 2024, which was up 2.3 percent from 2023.

The Bank of Mexico reported that June was the third consecutive month of decreased remittances seen. While the average payment sent to Mexico was higher than the previous year, at $409, the number of people sending payments has dropped by 14 percent.

In July, Senator Eric Schmitt said that Mexican President Claudia Sheinbaum was "desperate" to help Mexican citizens avoid the new tax. "Mass migration is not only a bad policy choice, it’s also a booming industry, and Mexico is one of its top beneficiaries. That’s why Claudia Sheinbaum is desperate to help her fellow countrymen here in the U.S. avoid our new tax on remittances," Schmitt told the Washington Examiner. Sheinbaum has reportedly proposed having Mexicans living in the US use a new government bank card from Finabien to avoid the remittance tax.