The economic policies and trade uncertainties introduced by Donald Trump have finally impacted the money transfers from the United States to Mexico. In April, the remittance inflow reached 4.761 billion dollars, marking a significant contraction of 12.14%. This is the steepest decline since September 2012, as reported by the Bank of Mexico (Banxico) this Monday.

These figures starkly contrast with the 5.120 billion dollars sent by Mexicans a month earlier, totaling 64.259 billion dollars over the past year. The drop has been driven by the weakened job market in the United States and the fear of deportation among immigrants, who are now hesitant to work or send money home, explains Gabriela Siller, economic analysis director at Grupo Base.

The outlook remains bleak from another angle. Between January and April 2025, the cumulative value of remittances was 19.015 billion dollars, lower than the 19.501 billion recorded in the same period last year, a decrease of 2.5%.

Additionally, the average amount sent by each individual has decreased. In April, the average transaction was 385 dollars, compared to 403 dollars in the same month last year, a reduction of 18 dollars or 4.4%.

Electronic transfers continue to dominate the remittance landscape. During the first four months of 2025, electronic transfers accounted for 99% of total remittances, amounting to 18.824 billion dollars. Meanwhile, cash and in-kind remittances and money orders made up 0.8% and 0.2% of the total, respectively, with values of 144 million and 47 million dollars.

Remittances between Mexico and the United States are a true reflection of their bilateral relations, currently strained by the proposed 3.5% tax on money sent by Mexicans. In 2024, this income represented 3.5% of the national GDP, a 2.3% increase from 2023, according to central bank figures.