Remittances to Mexico fell for the first time during Trump’s first month in office

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Donald Trump’s first month as president has taken its toll on remittances sent from the United States to Mexico. The family remittance report released Tuesday by the Bank of Mexico (Banxico) shows that remittance income from abroad stood at $4.459 billion in February 2025, a 0.8% drop compared to the previous month. This is the lowest monthly figure since May 2021.

In the last twelve months, remittances sent to Mexico totaled $64.7 million, a slowdown in the flow of money between the two countries. “The US labor market continues to cool, and economic activity has slowed, limiting the growth of remittances,” says Gabriela Siller, director of economic analysis at Grupo Base.

The Republican politician’s threats are affecting the financial relationship between the two countries. Last month, 11.7 million transactions were recorded, with an average remittance of $381, the result of a 0.2% reduction in the number of remittances and a 0.6% reduction in the value of the average remittance. “Remittances have been partially affected by the undocumented population’s fear of being deported,” Siller explains.

However, the fall of the dollar has increased the purchasing power of remittances. After the depreciation of the US currency, the purchasing power of remittances in Mexico grew 14.42% annually in February.

In 2024, Mexico received more than $63 billion from its citizens abroad, equivalent to 3.4% of its GDP, but the trend in 2025 is downward due to immigration restrictions and mass deportations in the US.