Trump Targets Key Lifeline for Africa: Money Sent Home by Immigrants
“The Trump administration’s proposed tax on remittances would disproportionately impact African nations, particularly Nigeria, Gambia, Liberia, and Senegal, which heavily rely on these funds. This move, coupled with previous aid cuts and tariffs, signals a U.S. retreat from Africa.
After slashing foreign assistance and introducing steep tariffs, the Trump administration is proposing a new tax on remittances. African nations would be among the hardest hit.
The Trump administration’s “One Big, Beautiful Bill” could make the United States the most expensive of the Group of 7 countries from which to send money, dealing another blow to poor nations already reeling from recent aid cuts.
As part of the bill, the U.S. government would take a cut of all remittances sent to foreign nations, a move that would hit millions of families worldwide who rely on money sent from loved ones working in America.
Latin American countries would lose several billion dollars if the bill passes the Senate. But for African nations, where poverty levels are far higher, remittances are even more of a lifeline.
The bill’s passage would be the latest sign of a U.S. retreat from Africa, coming on the heels of the gutting of the Agency for International Development and the introduction of steep tariffs after decades of preferential trade agreements on the continent.
People receiving remittances from abroad are, like aid recipients, often the very poorest.
In Africa, Nigerians would pay the most under the bill in absolute terms, losing around $215 million. Gambia and Liberia would lose the most as a percentage of gross national income; for both countries, around a quarter now comes from remittances. Senegal, which the World Bank ranked the country most dependent on remittances, would also suffer.“
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