FROM THE OUTSIDE | Remittances and the “intermestic” relationship

President Claudia Sheinbaum is correct, and additionally, her criticism of the proposed tax on remittances sent by Mexicans living in the United States highlights the “intermestic” nature of the bilateral relationship.

Referring to the 3.5% tax that Donald Trump’s administration seeks to impose on remittances, President Sheinbaum urged Mexicans in the U.S. to express their opposition through social media, emails, and letters addressed to American senators. Senators will review a budget bill this week that includes the controversial measure.

The objective is to urge lawmakers not to approve the remittance tax, as it would have a detrimental effect on Mexico.

The term “intermestic” describes domestic decisions that have international repercussions—and few relationships are as intermestic as the one between Mexico and the United States.

Sheinbaum stated that the Mexican government will keep addressing the matter and will send a new team to persuade U.S. legislators of the unfairness of the measure.

According to the American Immigration Council, in 2019, immigrants paid over $500 billion in taxes. By 2023, households led by undocumented immigrants, who make up 4.9% of the U.S. workforce, are projected to have contributed $89.8 billion in taxes, which includes $33.9 billion in state and local taxes and $55.8 billion in federal taxes.

In terms of fairness, Sheinbaum has a valid point. Migrants — both documented and undocumented — pay taxes in the U.S. and often contribute even more than necessary, as they frequently cannot access the tax credits or deductions available to American citizens.

This is one of those instances of “taxation without representation,” the very phrase that, according to American lore, helped spark the U.S. independence movement against Britain.

But does this amount to interference in the domestic affairs of the United States?

It’s a sensitive issue that requires careful consideration, as it could be easily exploited by nationalist groups, including those allied with President Trump.

It’s also true that American politicians and officials often speak about Mexico with a blend of freedom and recklessness. Trump himself — and some of his allies — have made comments about Mexico that were, at times, completely offensive.

In this context, President Sheinbaum’s remarks reciprocate — and hopefully demonstrate the influence and perspective of the Mexican migrant and Mexican American communities.

Like U.S. criticism of Mexico—whether justified or not—her statements illustrate the intermestic dynamic, serving as a reminder of each country’s impact on the other.