Republicans have proposed remittance taxes, part of a broader push to combat undocumented immigration.

Mexican President Claudia Sheinbaum condemned a provision in a tax bill that is being considered by the U.S. Congress that would impose duties on remittances – a term used to describe money people send abroad for non-commercial reasons, usually gifts for families and loved ones.

On Thursday, at a morning press conference, Sheinbaum addressed the tax form directly, calling the remittance proposal "an unacceptable measure."

"This will lead to a double taxation because Mexicans living in the United States have already paid the tax," she said.

She added that her administration is in contact with other large immigrant populations to express concern about the U.S. claims.

"It will not only affect Mexico," she said. "It will also affect many other countries and many other Latin American countries."

According to World Bank data from the World Bank in 2024, India is the highest recipient of international remittances, with $129 billion from abroad coming from abroad, followed by Mexico with more than $68 billion.

In Mexico, especially, experts estimate remittances account for 4% of GDP.

But a far-reaching tax bill advocated by U.S. President Donald Trump includes the language of the 5% excise tax on remittances specially sent by non-citizens, including visa holders and permanent residents.

The bill will affect nearly 40 million people living in the country. However, U.S. citizens will be exempt from remittance tax.

Trump led a campaign to block U.S. immigration and promote "massive deportations" during his second term as part of his "America First" agenda.

Supporters of the platform said tax remittances would be a clear deterrent to immigration who came to the U.S. for better economic opportunities and hoped to support any loved one who came home.

Mark Krikorian, executive director of the Center for Immigration Research, an anti-immigration think tank, told the Associated Press that he believes the barriers to remittances can help curb undocumented immigration to the United States.

“One of the main reasons people come here is to work and remit home,” Cricorian said. “If what you want to do is much harder, it becomes more attractive to come here.”

Under the bill weighed by the House, the sender will pay a 5% tax and will be collected by the “remittance transfer provider,” who will then send the money to the U.S. Treasury Department.

But, considering the unexpected consequences, President Sinbaum and other leaders called on Republicans in Congress to rethink the provision. Sheinbaum even suggested unconstitutional in the United States.

"It's an injustice other than unconstitutionality," she said Thursday. "But, in addition, it's a tax on those with the least. They should tax the people at the top, not the people at the bottom."

Critics of the measure pointed out that remittances can help stabilize poor areas abroad, thus limiting the possibility of unlicensed migration from these areas.

Other obstacles to sending remittances can cause economic setbacks to those communities, not to mention making it more difficult for U.S. citizens exempted from proposed taxes.

Nevertheless, even if the tax bill is defeated or the remittance rules are lifted, the Trump administration said it plans to take other measures aimed at preventing immigrants from sending money abroad.

On April 25, Trump posted a list of “Weekly Policy Achievements” on his media platform “Truth Social.”

On the last page, the highest bullet under "International Relations" is "finalized presidential memorandum to close remittances sent by illegal foreigners outside the United States." Trump called the document a "must read."