Mexico’s “Mobilization” Threat BACKFIRES!

Mexico’s president threatened to mobilize against a proposed remittance tax—only to provoke U.S. lawmakers to quadruple it in retaliation.

At a Glance

• GOP Senator Eric Schmitt proposed raising the remittance tax from 3.5% to 15% after Mexico opposed the initial bill.
• The tax targets money transfers from U.S.-based migrants to foreign countries, expected to generate $26 billion over 10 years.
• Mexico received $64.7 billion in remittances in 2024, more than it earned from oil exports.
• Republican lawmakers argue the funds should go toward U.S. border security rather than subsidizing foreign economies.
• Remittances account for 27% of Nicaragua’s GDP, revealing deep dependence on U.S. cash flows.

Retaliation Over Remittance

A diplomatic flare-up between Washington and Mexico City is escalating into a high-stakes fiscal standoff. Mexican President Claudia Sheinbaum warned of “mobilization” after learning of a Republican proposal to tax remittances at 3.5%. Her threat prompted GOP Senator Eric Schmitt (R-MO) to fire back with legislation pushing that rate to 15%.

Schmitt, in a statement to Breitbart, said plainly, “America is not the world’s piggy bank. And we don’t take kindly to threats.” The policy targets billions of dollars migrants in the U.S. send abroad each year—funds critics say escape domestic taxation while supporting economies that do little to curb out-migration.

Watch a report: Senator Proposes Massive Hike to Remittance Tax.

Global Cashflows Under Fire

The impact of such a tax is far from symbolic. In 2024, Mexico received a staggering $64.7 billion in remittances, surpassing its oil revenues. Nicaragua, which received $373.5 million in remittances in January 2025 alone, depends on those inflows for 27% of its GDP. Schmitt’s proposal aims to reroute at least a portion of that capital back into American priorities, including infrastructure and border security.

Representative Chip Roy (R-TX) supports using the revenue to fortify immigration control mechanisms, arguing that current transfers are untapped revenue leaking out of the U.S. economy. The White House has not yet weighed in, but the issue is gaining traction among fiscal conservatives and border hawks alike.

America First Economics

Originally introduced as part of the House’s “Big Beautiful Bill,” the remittance tax included provisions for a 5% levy on transfers by undocumented migrants, alongside a refundable tax credit for legal residents. Now, with Sheinbaum’s opposition inflaming GOP resolve, Schmitt has proposed expanding and intensifying the measure.

In a follow-up statement, he said, “The House’s Big Beautiful Bill addressed the urgent need for a remittance tax. But we can go further.” By quadrupling the rate to 15%, Schmitt believes the U.S. can reshape the economic incentives behind mass migration—forcing foreign governments to take more responsibility for their citizens.

The escalating rhetoric and rapid legislative shifts underscore a growing consensus on the right: that America’s economic resources should not serve as unreciprocated lifelines to other nations. As Sheinbaum doubles down on opposition, Republicans are signaling that the more Mexico resists, the more aggressive the U.S. response may become.