Economy

Remittances now come with a 3.5% surcharge
 Articles, Economy, International, Taxes

Now Charging Hope: Remittances Hit With 3.5% Fee

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.

3.5% Remittance Tax Stays: Presidenta Sheinbaum calls it unfair—yet confirms it’s still in place.

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.

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Cross-Border Cash Clash: When Dollars Meet Pesos Under a New Tax
 Articles, Baja Norte, Economy, Taxes

The Debate Over the 5% Remittance Fee: Baja’s Perspective

There’s a new proposal making noise across the border—and it’s got Baja’s name all over it. U.S. lawmakers are pushing for a 5% fee on money sent through remittances. That might sound like a distant debate in D.C., but here in Baja? It hits close to home.

Who Sends the Money?

Baja California—especially Tijuana—runs on a two-country rhythm. According to government data and INEGI, over 75,000 people live in Baja but work across the border in the U.S. Every day, they cross, earn in dollars, and spend or send money back home. Whether it’s covering rent, buying groceries, or paying school fees, those remittances keep thousands of families afloat.

So, what happens if those wire transfers suddenly come with a 5% tax?

That’s the question everyone’s asking.

The Proposal That Started It All

Last week, the U.S. House Ways and Means Committee gave the green light to a bill that would charge a 5% remittance fee. The catch? It applies only to people who aren’t U.S. citizens or legal residents. That includes visa holders and undocumented workers—many of whom pay taxes and contribute to the U.S. economy every day.

Supporters say it would fund border security. Critics say it’s a slap in the face to the same people holding up entire industries like agriculture, construction, and hospitality.

Sheinbaum Fires Back

President Claudia Sheinbaum didn’t hold back. She called the proposal “unacceptable” and “unconstitutional,” pointing out that Mexicans working in the U.S. already pay taxes—on both sides of the border, in many cases.

She also warned that this kind of policy could backfire. “This will only encourage informal money transfers,” she said, “and hurt the people who rely on them most.”

Mexico has already started reaching out to U.S. lawmakers to push back diplomatically—and loudly.

Will Baja Feel It?

Yes, but maybe not how you think.

Since so many people live in Tijuana but earn their income in the U.S., they often spend their dollars directly here, not through formal remittances. That daily, cross-border flow of people and money keeps Baja’s economy humming.

Still, if this proposal passes, families who rely on transfers from relatives deeper in the U.S.—say in Arizona, Nevada, or California—will feel the squeeze.

And if workers start using informal channels to dodge the tax? That could make things messier—and riskier.

Will Baja Pay the Price for Earning the American Dream?

What’s Next?

For now, the bill still has to make it through the full House, then the Senate, then land on the president’s desk. Even if it passes, it wouldn’t go into effect until 2026 at the earliest.

But the message has already been sent—and Baja is paying attention.

Your Turn

Do you work across the border and live in Baja? Would this change how you send or spend money? Let us know—this is your story, too.

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Governor Marina del Pilar handed over ten electric carriages to local drivers
 Articles, Economy, Ensenada, Tourism

Ensenada Rolls Out Electric Carriages: Tradition Meets Innovation

Ensenada has taken a significant step toward sustainable tourism

On April 21, Governor Marina del Pilar Ávila Olmeda gave out ten electric carriages to local drivers. These will replace the old horse-drawn ones.

The new rides carry four passengers. They’re quiet, eco-friendly, and best of all, no horses needed.

The state invested 2.75 million pesos through its Department of Economy and Innovation. Officials also plan to install charging stations across town.

#MarinaDelPilar And Claudia A

This move follows a new law in Baja California. It bans animals from pulling carriages for tourism. It also recognizes animals as living beings, not property.

“This is a big day,” said the governor. “We’re ending horse-drawn rides and moving to clean, modern transport—without losing our charm.”

The change didn’t happen overnight. Authorities worked with drivers to find solutions. Now, drivers get to keep their jobs—and horses get to rest.

Jenny de la Cruz, speaking for the group, thanked the state for helping them modernize. She said the change protects a tradition that’s been part of Ensenada for over 40 years.

So yes, you can still ride through Ensenada’s scenic streets. But now, the wheels are quiet—and the animals are free.

Here at the Gringo Gazette North, we love when old traditions meet new ideas. Especially when everyone wins—including the horses.

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Sheinbaum stated that, with the Mexico Plan, she aims to recover the production that has been lost in the country. (Photo: Presidency
 Articles, Baja Norte, Economy

Baja California? Holding its breath.

🇲🇽 Mexico Dodges a Trade War (Sort Of) — But Tariffs Still Sting

Baja watches the big game with nosebleed tickets

Trump’s trade policy just got real. The U.S. imposed 25% tariffs on imports from multiple countries, and although Mexico managed to avoid retaliatory tariffs, it couldn’t dodge the hit entirely. Over 50% of Mexican exports to the U.S. are now subject to the new rates.

Mexico’s response? Diplomatic silence. No counterattacks. No panic. Just a quiet commitment to ride the wave without starting a trade war.

SúperPeso

📊 The twist? Mexico is doing pretty well, all things considered.

The peso didn’t collapse. The markets didn’t flinch. And the world noticed: Mexico’s now seen as a stable and strategic partner in a world full of economic tantrums.

🌉 Baja California, however, is in limbo.

Despite being in the ideal location for cross-border trade, we’re still stuck with infrastructure bottlenecks, overloaded ports, and a grid that flickers at the worst times. We could be leading this moment, but instead we’re fumbling to keep pace.

💸 Meanwhile, remittances keep sliding—which hits harder in Baja than people think. The big wins in macroeconomics don’t always make it to the kitchen table.Mexic

📰 At Gringo Gazette North, we believe good news doesn’t always come with fireworks. Sometimes, staying calm under fire is the real headline.

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 Baja Norte, Breaking News, Economy

Baja California Ranks Third in Average Monthly Household Income Nationally

EDITOR NOTE: The dollar (USD) amounts in this article where converted from the pesos amount mentioned in the article at an exchange rate of 16.80 pesos per dollar.

Baja California has risen to the third spot among Mexican states with the highest average monthly household income. It now boasts an income of 29,637.41 pesos (1,764 USD), according to analysts from the Metropolitan Center for Economic and Business Information (Cemdi).

Aram Hodoyán Navarro, the head of Cemdi, referred to data from the 2022 National Household Income and Expenditure Survey (Enigh) conducted by the National Institute of Statistics and Geography (Inegi). He pointed out that the regions with the highest average monthly income are Baja California Sur and Mexico City, earning 30,472.37 and 29,770.09 pesos respectively (1,814 and 1,772 USD). The amount in Baja California of 29,637.41 pesos (1,764 USD) is significantly higher than the national average of 21,231.82 pesos (1,264 USD).

In contrast, Navarro compared, the states with the lowest monthly average household income as per this survey are Chiapas and Guerrero, earning 13,281.61 and 13,918.02 pesos, respectively (791 and 832 USD). In the context of Baja California, an average household typically comprises three members. The household head is generally 49 years old, and the other two members may also be employed. “Households in Baja California reported an average monthly income of 29,637.41 pesos (1,764 USD), a 15.0 percent increase compared to the 2020 Enigh results,” he detailed.

Navarro further noted that the primary source of income for these households is salaries from subordinate jobs, which account for 72.88 percent or about 21,598.47 pesos (1,286 USD). Transfers make up 10.93 percent of the income, with half of this being from retirements and pensions.

When discussing average monthly household expenses, Navarro indicated that the national average stands at 13,321.60 pesos (680 USD). The states with the highest expenses were Mexico City and Baja California, spending 19,632.54 and 16,771.14 pesos respectively (1,169 and 998 USD). In contrast, Chiapas and Oaxaca had the lowest expenses, at 8,647.63 and 8,865.80 pesos respectively (515 and 528 USD).

Furthermore, Navarro mentioned that the state saw a 19.1 percent increase in the average monthly household expenditure compared to the figures from the 2020 Enigh. Of these expenses, the primary spending category was food, beverages, and tobacco, making up 32.09 percent. This was followed by transportation, acquisition, maintenance, accessories, and services for vehicles, and communications which took up 23.76 percent.

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