US House Approves Remittance Tax; Trump Extends EU Tariffs Talks

The US House of Representatives approved a bill imposing a tax on remittances sent by migrants. Backed by Trump, the bill now heads to the Senate. After threatening 50% tariffs on EU goods, Trump agreed to extend the tariff negotiation deadline to July 9. In addition, exports rose 5.8% in April to US$54.3 billion amid tariff fears, but a 1.2% drop in imports hints at a looming slowdown.

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House of Representatives Approves Bill of 3.5% Tax on Remittances

The US House of Representatives has approved a bill that includes a 3.5% tax on remittances sent by foreign residents to their countries of origin. The measure represents a reduction from the initial proposal, which sought a 5% rate. The bill, part of a broader fiscal package championed by Donald Trump, will now proceed to the Senate, where it is expected to be debated by the Republican majority with the aim of securing final approval before July 4.

Trump Extends Tariff Pause on EU Amid Ongoing Trade Talks

US President Donald Trump has agreed to push back the deadline for tariff negotiations with the European Union to July 9, following a phone conversation with European Commission President Ursula von der Leyen. Initially, Trump had announced a 20% tariff on most EU imports, later reducing it to 10% to allow more time for talks. However, he warned that tariffs could rise to 50% starting June 1 due to frustration with the slow pace of negotiations. Just two days later, he shared that after a “very nice” call with von der Leyen, he had agreed to extend the deadline.

Mexico’s Exports Rise 5.8% in April Amid US Tariff Uncertainty

In April, Mexico’s exports of goods grew by 5.8% year-on-year, reaching US$54.3 billion, partly driven by increased demand as businesses anticipated potential US tariffs. Meanwhile, imports dropped 1.2% to US$54.4 billion, resulting in a trade deficit of US$88.1 million. Luis Adrián Muñiz, Analyst, Vector, suggested that the full impact of US tariffs on Mexican trade may not yet be visible. However, the drop in imports could indicate weaker exports in May.

Italy Pledges €100 Billion to Boost Business in LATAM

Italy announced financial support of over €100 million (US$113 million) to support Italian companies venturing in Latin America, with Mexico being a key target. Italian and Mexican authorities recognized the complementarity of both economies and agreed on the need to strengthen ties.

SEP Launches “Jóvenes por la Paz” Program in Technical Schools

SEP is implementing Jóvenes por la Paz, (Youth for Peace) a new program across 313 CONALEP campuses to promote student participation in projects aimed at fostering peace and social coexistence nationwide. The initiative aligns with the country’s broader educational reform known as the Nueva Escuela Mexicana (New Mexican School).