A dramatic shift is unfolding at the U.S.-Mexico border, and Mexican President Claudia Sheinbaum is facing mounting pressure as millions in remittances suddenly vanish. President Donald Trump’s aggressive immigration crackdown and new tax proposals are now at the center of a fierce political and economic debate.
According to Breitbart, remittances sent from the United States to Mexico dropped by over $250 million in April—marking the lowest level in more than a decade and sparking urgent concern in both countries. The drop was confirmed by Banco de México and follows sweeping new enforcement measures and a controversial remittance tax proposal from the Trump administration.
For many Mexican families, these transfers are a lifeline. Now, with mass deportations, enhanced workplace raids by U.S. Immigration and Customs Enforcement (ICE), and fears of a new 3.5% “Big Beautiful Bill” tax, uncertainty hangs over the future of cross-border support.
President Sheinbaum addressed the stunning drop at her daily press conference, urging calm but offering few immediate solutions. She announced that a delegation of Mexican officials will travel to the United States to confront the proposed remittance tax, which could funnel billions into U.S. coffers but devastate Mexican households.
The Mexican government is particularly concerned about the potential impact of the “Big Beautiful Bill,” which seeks to impose a 3.5% tax on remittances sent to Mexico. With more than $60 billion transferred in 2024 alone, such a tax could generate well over $2 billion for the U.S. treasury each year, but at the expense of both legal and undocumented workers’ families.
Sheinbaum’s call for patience comes as critics demand clarity. Many in Mexico are alarmed by what they see as a double blow: the Trump administration’s crackdown on undocumented workers and a looming tax that could cut even deeper into family incomes.
The Trump administration’s surge in ICE enforcement is already being felt nationwide. Worksite raids have increased sharply, targeting multiple industries and leading to significant layoffs, especially of migrants whose legal status has been revoked. According to reports, some of the largest employers in the country have started terminating workers in response to the threat of federal penalties.
A New York Post report cited by Breitbart highlights that Walmart has begun firing mostly Venezuelan workers after their Department of Homeland Security work authorizations were rescinded. Disney has also responded to legal changes by putting dozens of workers on leave following a Supreme Court ruling in May that allowed the Trump administration to revoke Temporary Protected Status for more than 350,000 Venezuelans.
These actions have sparked an outcry from immigrant rights groups, who argue that the Trump administration’s approach is both punishing and destabilizing for families on both sides of the border. Protests are erupting in cities like San Antonio, where activists condemned the wave of deportations and arrests.
Supporters of President Trump insist that strict enforcement of immigration laws and the remittance tax are necessary to protect American jobs and generate needed revenue. They argue that companies must comply with federal law and that any resulting decline in remittances is an unavoidable consequence of restoring order at the border.
Opponents, however, see a strategy designed to intimidate and impoverish immigrant communities. Groups like the Party for Socialism and Liberation have joined with local organizations to protest outside federal courthouses, warning of the humanitarian fallout from mass job losses and deportations.
Worksite enforcement operations have reportedly uncovered unauthorized workers at high-profile locations—including a construction site at the University of Texas at San Antonio (UTSA). Critics claim that such raids can devastate communities, disrupt local economies, and undermine trust in law enforcement.
As the remittance crisis deepens, both governments face tough choices. Mexican officials are preparing for talks in the United States, hoping to stave off the “Big Beautiful Bill” tax and restore confidence in the remittance system. For now, families on both sides of the border are bracing for further disruption.
President Sheinbaum’s administration is under pressure to deliver answers as the economic shock ripples through Mexican communities accustomed to steady financial support from relatives in the United States. Meanwhile, the Trump administration remains committed to its enforcement agenda, signaling that further layoffs and deportations could be on the horizon.
With billions at stake and livelihoods hanging in the balance, the fight over remittances is shaping up to be a defining issue in the ongoing battle over immigration, employment, and cross-border relations.
