A Trump administration bill—unofficially dubbed the One Big, Beautiful Bill—could make the United States the most expensive G7 country for international money transfers. The measure would deliver yet another blow to poor nations already reeling from cuts in U.S. foreign aid.
Under the proposal, the government would withhold a percentage of every sum sent abroad—including remittances from migrants to their families. For millions who depend on these transfers, it amounts to a direct loss.
The impact would be especially severe for countries in Latin America and Africa. The total losses could reach billions of dollars—and for nations where remittances make up a substantial share of GNI, the consequences could be catastrophic. In Liberia and The Gambia, such transfers account for roughly a quarter of the economy. Senegal is among the world’s most remittance-dependent countries, according to the World Bank.
Sheep market in Dakar, Senegal.
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In 2024, countries in sub-Saharan Africa received nearly $10 billion in remittances from the United States—roughly equivalent to the level of official U.S. aid before Trump’s inauguration. Private transfers have effectively replaced formal assistance. The new tax mechanism now threatens that lifeline as well.
Critics of the proposal point out that migrants already pay income taxes on the earnings from which remittances are sent. The new levy would effectively be a second tax. On top of existing transfer fees—typically around 6%—an additional 3.5% would go to the federal budget. Nearly $10 would be lost for every $100 sent, making the U.S. the most expensive G7 country for sending remittances.
For recipients at the other end of the chain, that loss is tangible. In 2023, 75-year-old widow Helena Saikyamien from a run-down district of Monrovia was able to buy a refrigerator with $500 sent by her daughter in Delaware. In a city plagued by heat and power outages, it allowed her to sell chilled water to neighbors and feed eight children living with her, thanks to a monthly $200 remittance.
"Americans—they really want us to have problems," she said in an interview. "They truly want us to go through stress."
Money exchange in Lagos, Nigeria.
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The United States is already among the most expensive countries for sending money abroad. Transfer companies typically pass taxes and fees on to customers. As a result, according to the World Bank, Africans pay the highest remittance costs globally.
"The poorest people on the planet are going to be hit twice—by a whole series of measures from the current administration," says Helen Dempster of the Center for Global Development.
According to its proponents, the new tax is meant not only to reduce the volume of remittances, but also to deter new migrants and encourage those already in the U.S. to consider "voluntary departure." But experts warn this will fuel the growth of informal channels—remittances delivered by private couriers carrying cash, electronics, and valuables. The use of cryptocurrency is also rising as a way to bypass traditional payment systems.
"This is an attack on the generosity of the diaspora," says Amma Gyampo, an entrepreneur from Ghana. In her view, such measures don’t curb migration—they accelerate it: "When people face financial hardship, it actually increases migration," she stresses.
Analysts warn that the initiative could push millions into poverty, accelerate irregular migration, and hamper recovery in countries burdened with high levels of debt.
Meanwhile, the United Nations is calling on countries to reduce remittance costs to below 3% by 2030. Today, the global average is nearly twice that—and the new U.S. tax makes that target even more elusive.