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Mexico, U.S. continue negotiations on trade, remittance tax

The U.S. Capitol on April 4, 2024.
Jean Clare Sarmiento/KJZZ
The U.S. Capitol on April 4, 2024.

Mexico says it was able to negotiate a win for immigrants in the U.S. in President Donald Trump’s spending bill.

Mexican President Claudia Sheinbaum told reporters Thursday that she’s pleased that the proposed U.S. tax on remittances — the money immigrants send back to family and friends in their countries of origin — has been reduced.

Trump’s massive spending and tax cut bill is working its way through Congress and would have put a 5% tax on all remittances from non-citizens. After hearing concerns from Mexican diplomats, U.S. lawmakers have reduced the proposed tax to 3.5%.

Trade negotiations also continue between the two countries. Sheinbaum said she and Trump discussed U.S. tariffs on steel, aluminum and cars in a phone call.

“We continue negotiating, with a good relationship and good communication,” Sheinbaum said.

Nina Kravinsky is a senior field correspondent covering stories about Sonora and the border from the Hermosillo, Mexico, bureau of KJZZ’s Fronteras Desk.