In a controversial move, the Trump administration's “One Big, Beautiful Bill” proposes taxing remittances sent to foreign countries, a policy expected to have severe repercussions for poorer nations, particularly in Africa, as they heavily depend on this financial support.
Trump Administration Proposes Tax on Remittances, Targeting African Economies
Trump Administration Proposes Tax on Remittances, Targeting African Economies
The newly introduced tax on remittances by the Trump administration threatens the financial lifelines of families in Africa, where poverty is rampant.
June 3, 2025, 5:22 p.m. ET - The Trump administration's new initiative dubbed the “One Big, Beautiful Bill” stands to make the U.S. the most costly nation among the G7 for sending money internationally, putting immense strain on nations already affected by significant cuts in foreign aid. This legislation plans to extract a portion of the remittances sent abroad by immigrants, which would significantly impact millions of families worldwide, particularly in developing countries where funds from abroad are crucial for survival.
Countries in Latin America are projected to lose billions if the Senate ratifies the bill, but for many African nations—the livelihoods of their populations heavily rely on these remittances—the consequences are even more dire. The bill further signifies a troubling trend in U.S. foreign policy focusing on neglecting Africa. Recent reductions in funding for the Agency for International Development alongside the imposition of heavy tariffs after years of leniency in trade practices exacerbate the challenges faced by African economies.
Nigerians are expected to suffer the largest monetary losses in absolute terms, facing a decline of approximately $215 million. Meanwhile, the Gambia and Liberia would experience the most significant impact relative to their economies, as remittances constitute around a quarter of their Gross National Income. Notably, Senegal has been identified as the country most reliant on remittances, according to World Bank data, and is poised to take a substantial hit if this tax comes into effect.
Countries in Latin America are projected to lose billions if the Senate ratifies the bill, but for many African nations—the livelihoods of their populations heavily rely on these remittances—the consequences are even more dire. The bill further signifies a troubling trend in U.S. foreign policy focusing on neglecting Africa. Recent reductions in funding for the Agency for International Development alongside the imposition of heavy tariffs after years of leniency in trade practices exacerbate the challenges faced by African economies.
Nigerians are expected to suffer the largest monetary losses in absolute terms, facing a decline of approximately $215 million. Meanwhile, the Gambia and Liberia would experience the most significant impact relative to their economies, as remittances constitute around a quarter of their Gross National Income. Notably, Senegal has been identified as the country most reliant on remittances, according to World Bank data, and is poised to take a substantial hit if this tax comes into effect.
