Trump’s Remittance Tax Could Hit African Families Where It Hurts Most

A new US remittance tax under President Trump’s administration could deeply impact millions of African families who rely on money sent from abroad. The 3.5% levy, targeting non-citizens, has sparked concern among experts who argue that these funds are vital for education, healthcare, and daily survival. With over $12 billion in remittances flowing from the US to Africa in 2024 alone, the tax could push migrants toward unregulated alternatives like cryptocurrency. Critics argue the policy will hurt vulnerable communities in both the US and Africa. It will especially affect countries like Lesotho, Comoros, Somalia, the Gambia, and Liberia, as remittances constitute about 20% of their respective GDPs, according to World Bank data. As official channels become costlier, the financial lifeline connecting diaspora and home may fray, threatening livelihoods in some of Africa’s poorest regions.

DW