Remittance alert! Sheinbaum rejects US tax and celebrates reduction after meeting with Trump; Ebrard travels urgently to Washington

President Claudia Sheinbaum rejected a new tax on remittances proposed in the U.S. on Friday, May 23, calling it "discriminatory." After a conversation with Donald Trump, she celebrated a "reduction" in the rate and announced Secretary Marcelo Ebrard's urgent trip to Washington to negotiate and protect this vital income for millions of Mexican families.

Mexico City, May 23, 2025 – Alarm bells went off in the Mexican government and among millions of families who depend on remittances from the United States. President Claudia Sheinbaum Pardo expressed her firm and resounding rejection this Friday of the proposal in the U.S. Congress to impose a significant new tax on remittances, calling the measure "discriminatory" and potentially devastating for the economy of thousands of Mexican households.

In a shift intended to defuse the crisis, President Sheinbaum revealed she had a direct conversation with former U.S. President Donald Trump. Following this conversation, the president welcomed what she described as a "reduction" in the originally proposed tax rate, although the specific details and final percentage of this reduction have not yet been fully clarified.

As part of the diplomatic and negotiation strategy, it was immediately announced that the Secretary of Economy, Marcelo Ebrard Casaubón, will travel to Washington, D.C., this Friday. Ebrard's mission is clear: to continue the dialogue at the highest level, seek guarantees, and ensure that the interests of Mexican workers in the United States and their families in Mexico are protected.

"We will not allow our fellow citizens to be affected in this way. Remittances are the fruit of their efforts and a pillar for many communities in Mexico," Claudia Sheinbaum said.

The original proposal had generated enormous concern. According to analysis by public accountants, if the initially discussed rate had been applied (some sources reported as high as 37%), the cost of sending remittances could have nearly tripled, representing a direct blow to the pockets of those who send and receive these funds. Remittances constitute one of the main sources of foreign currency for Mexico and are a fundamental livelihood for millions.

The threat of this tax has not only mobilized the Mexican executive branch. Mexican senators and members of the Morena party in Congress have also spoken out and mobilized to prevent the taxation of remittances, arguing that a measure of this nature "attacks the dignity of our fellow citizens."

From the United States, the head of the Institute for Mexicans Abroad (IME), Tatiana Clouthier (although one source indicates that she is still not working at the IME and is causing unrest, another mentions her warning about the initiative), had previously warned about these initiatives on Capitol Hill, which would seek to penalize expelling countries in order to obtain resources to finance US border security.

It was even mentioned that the U.S. ambassador to Mexico had offered his help to facilitate dialogue between the two nations on this sensitive issue.

* US proposal: Initiative to impose a new tax on remittances sent from the US.

* Mexico's rejection: Sheinbaum's government considers it "discriminatory."

* Presidential Intervention: Sheinbaum-Trump Talk Results in Rate "Decrease."

* Diplomatic Mission: Marcelo Ebrard travels to Washington to negotiate.

* Economic Impact: Concern over possible drastic increases in shipping costs.

* Legislative Mobilization: Mexican congressmen oppose the measure.

The defense of remittances has become a priority for Sheinbaum's administration, aware of their social and economic importance. Marcelo Ebrard's negotiating skills will be put to the test in Washington, on an issue that touches deeply on the bilateral relationship.

The migrant community, for its part, has expressed its determination: "We will always find a way to send money to Mexico," a phrase that resonates with the resilience and commitment of Mexicans abroad.

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