Mexican President Claudia Sheinbaum announced on August 23 that remittances from the United States have fallen to their lowest levels since 2022, attributing the 5% drop to the "climate of fear or concern that has been imposed, given the current situation" under Donald Trump's immigration policies.

Sheinbaum expressed particular concern about the reduction's impact on Mexico's most vulnerable communities. "Of course, we are concerned, especially because remittances reach the communities that have the least, from family members who are over there," the president stated during her press conference.

The decline comes despite deportations remaining below Trump's campaign promises. During his first six months in office, the Trump administration repatriated 56,000 Mexican nationals, compared to 82,000 deported during the same period under predecessor Joe Biden last year.

"We are working to determine exactly what is causing this reduction. The number of Mexicans who have been repatriated, when compared to previous periods, is not particularly high," Sheinbaum explained, suggesting factors beyond actual deportation numbers may be influencing the remittance flow.

The president noted that remittances increased dramatically in 2023 and continued growing in 2024, making the recent months' decline particularly concerning for her administration. The drop represents a significant economic concern given remittances' importance to Mexico's national economy.

Remittances totalled over $64bn in 2024, representing 3.5% of Mexico's gross domestic product and serving as a crucial income source for millions of families across the country. The funds primarily support lower-income communities that depend on money sent by family members working in the United States.

The decline reflects broader impacts of Trump's hardline immigration rhetoric and enforcement policies on Mexican immigrant communities, even without proportional increases in actual deportations.