It is a decision that risks making teeth cringe, far beyond American borders. On July 3, the Senate adopted the vast budgetary bill called “One Big Beautiful Act”, presented by the Trump administration. Among its shocking measures: a 1 % tax on the sums sent abroad by the American non-citizens, having to enter into force in 2026.
Objective displayed: finance the recruitment of new immigration police officers and strengthen border control. For the White House, it is also, according to the agency AP, of “To discourage the arrival of new migrants” on American soil.
A compromise under pressure from the congress
Initially, the text provided for a much heavier tax: 3.5 % on each transfer. But after intense negotiations, especially under pressure from elected democrats, the rate was reduced to 1 %. Even at this level, the impact promises to be considerable.
More than $ 60 per transaction
For a sending of $ 1,000 to an African country, it will first be necessary to pay the usual costs of money transfer companies (on average just over 5 %), then add this new federal tax. In total, the cost will climb to more than $ 60 per transaction. To this is added an administrative complexity: funds intended to finance the studies of a child will be exempt … but only if the sender provides supporting documents to the American tax administration.
A blow for African countries, but not only
This measure even occurs as American public aid to foreign countries is retreating. Sub -Saharan Africa, in particular, depends strongly on the funds sent by its diaspora. According to the World Bank, in 2024, more than $ 56 billion was transferred to the region, including almost 10 billion from the United States.
For Nigeria alone, the main African beneficiary, $ 5.7 billion comes from expatriates each year. In Liberia, these shipments represent almost 20 % of national GDP. In Haiti and Jamaica, they weigh respectively 15 % and 19 % of GDP. The shortfall to come and already strongly worries governments and beneficiary families.
But the shock is not limited to the African continent. The countries of Central America are also on the front line: in Guatemala, Honduras or Salvador, the money sent by expatriates sometimes represents more than 20 % of GDP. Further on, India, the world’s largest beneficiary of transfers, would also see its income decrease. According to the Indian central bank, these flows have more than 3.5 % of national GDP.
By reducing the amount of these transfers, the new tax may impact the economies of the countries concerned, but also Push part of the transfers to informal circuits, potentially encouraging fraud. For Donald Trump and his supporters, this is the price to pay for a stricter migration policy.
