The bill, referred to as “One Big, Beautiful Bill,” is set to take a percentage of all remittances sent by immigrants back to their home countries. In Africa, the consequences are especially grave, with countries experiencing heightened poverty due to these changes. Nigeria is projected to lose approximately $215 million in remittances, while Gambia and Liberia could see a staggering quarter of their gross national income affected by this tax. Senegal, ranked as the most dependent on remittances by the World Bank, will also face considerable financial strain. This development serves as yet another indication of the U.S.'s withdrawal from supporting African nations amid steep declines in international aid and trade agreements.
Trump Administration Proposes Tax on Remittances, Hitting African Nations Hard
Trump Administration Proposes Tax on Remittances, Hitting African Nations Hard
The proposed tax on remittances could significantly impact millions of families in Africa, exacerbating poverty rates.
The Trump administration's new domestic policy bill threatens to create the highest remittance costs in the G7 while severely affecting African nations that rely on money from diaspora communities. With a notable decrease in foreign assistance and added tariffs, the U.S. government's plan is expected to result in significant financial losses for countries like Nigeria, Gambia, and Liberia—further isolating them during a challenging economic time.
