How a U.S. Tax Could Hit Latin American Remittances
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How a U.S. Tax Could Hit Latin American Remittances
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Tucked inside the Trump administration’s One Big Beautiful Bill is a proposed tax of 3.5 percent on remittances that could have major consequences for how much money Latin American immigrants can send home to their loved ones—and how they send it. “Immigrants are going to absorb that tax in order to keep sending money to their families [or] they could change the channels they use,” says René Maldonado, coordinator of CEMLA’s remittances program and consultant for the IDB’s migration unit.
In this episode, Maldonado talks with AS/COA’s Carin Zissis about shifting remittance trends in the region, how immigrants have adapted to maintain an economic lifeline, and the potential impact of the current political climate on future remittance flows.
For more of our coverage on the impact of Trump’s policies in Latin America, visit as-coa.org/trump to keep up to date with migration, trade, and more.
And to learn more about the IDB’s research on remittances, read the 2024 report co-authored by Maldonado and check out their blog, La Maleta Abierta.
The music in the podcast is “Sonora y sus ojos negros” by Suspenso del Norte and “Lamentos do Morro” by Felipe Reis for Americas Society’s “En Casa” concert series. Find out about upcoming concerts at musicoftheamericas.org.
Share your love for Latin America: Join Americas Society. Becoming a member gives you preferential access to music performances, art gallery, book events, our magazine Americas Quarterly, and more.
Access other episodes of Latin America in Focus at www.as-coa.org/podcast and send us feedback at latamfocus@as-coa.org. Share and subscribe at Apple, Spotify, YouTube, or wherever you get your podcasts.
Opinions expressed in this podcast do not necessarily reflect those of Americas Society/Council of the Americas or its members.
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