Just when you thought the border couldn’t get any pricier—remittances now come with a 3.5% surcharge.
Last week, the proposed 5% remittance tariff set off alarms. We unpacked the implications in our article “The Debate Over the 5% Remittance Fee: Baja’s Perspective”, highlighting concerns for families, cross-border workers, and Mexico’s economy.
But this morning, President Claudia Sheinbaum confirmed during her daily press conference that the number has been negotiated down to 3.5%. Still, the tariff remains active and very real.
Sheinbaum insists the fee is unjust and violates a bilateral agreement between the U.S. and Mexico. She’s pushing to eliminate it altogether. But for now, it stands—and it hits a sensitive nerve in Mexico’s financial stability.
It’s Not Just Money
Remittances represent a significant slice of Mexico’s GDP, especially in border regions like Baja California. Cities such as Tijuana depend on thousands of cross-border workers—many of whom lack formal documentation or status.
So far, no thorough study has determined how many of these workers are U.S. citizens, legal residents, or hold temporary work permits. And that doesn’t even count the thousands working off the books.
In 2024, Mexicans sent home over $63 billion dollars in remittances. That’s not just a number—it’s sacrifice, family ties, and economic survival.
Now, imagine skimming 3.5% off the top. That’s money lost on both sides of the border.
Pushback Grows
To respond, Sheinbaum’s administration is proposing a permanent binational roundtable with diaspora leaders—those representing migrant communities abroad who understand the human impact of these policies.
(For more on how diasporas can shape policy, check this international initiative.)
Critics are lining up. Javier Medina, a Mexican-American professor and researcher living in Arlington, Texas, warned that the fee could undermine the main incentive that drives legal migration and formal employment.
“If you weaken that support channel,” Medina said, “you’re not just taxing dollars. You’re cutting into the very reason many migrants keep going.”
Baja’s Reality Check
For Baja, the stakes are deeply personal. Will this policy drive remittance activity underground? Will families turn away from banks?
And the bigger question—who really gains from taxing care?
This isn’t just about money transfers.
It’s about people.
