In a striking new proposal, President Donald Trump aims to impose a tax on remittances sent by immigrants to their home countries, adding to recent cuts in foreign assistance and steep tariffs on numerous nations. This initiative, part of his ‘One Big, Beautiful Bill,’ would allow the U.S. to take a share of remittances, a decision critics argue could severely impact the livelihoods of people in low-income countries.
According to the New York Times, this proposed legislation signals a retreat from U.S. commitments to Africa, following significant reductions in foreign aid and a rise in tariffs. The bill would require immigrants to pay an additional 3.5 per cent federal tax on top of the approximately six per cent already charged by banks and remittance services, making the U.S. one of the most costly countries for sending money abroad.
Nigerians are expected to bear the brunt of this tax, with projected losses around $215 million, while nations such as Senegal, The Gambia, and Liberia are also likely to feel the strain. Helen Dempster from the Centre for Global Development expressed concern that this legislation would hit Africa’s poorest hardest, indicating it could deter migration and compel those in the U.S. to consider returning home.
Experts view the proposal as a calculated attack on the generosity of the diaspora, risking increased hunger and illegal migration while stifling economic growth in African countries already burdened by debt. Abike Dabiri-Erewa, chair of the Nigerians in Diaspora Commission, has yet to respond regarding its implications for Nigerians in America.
Additionally, last month, Trump suggested a $1,000 travel incentive for migrants opting for voluntary deportation, part of his broader immigration strategy.
