Trump’s Proposed 5% Remittance Tax Could Hit Zimbabweans in the US—What It Means for Diaspora Dollars

One of former US President Donald Trump’s key policy proposals could make it more expensive for Zimbabweans and other immigrants in the US to send money back home.

A draft House Republican bill, released recently, includes a 5% excise tax on remittance transfers—a move that could affect millions, including green card holders and nonimmigrant visa holders.

The bill targets cross-border payments made by US residents to recipients in foreign countries. If passed, sending money to Zimbabwe—or any other country—would become more expensive, potentially reducing the amount families here receive.

Trump has also announced plans to finalize a presidential memorandum aimed at restricting remittances sent by undocumented immigrants, further tightening the flow of diaspora dollars.

Why This Matters for Zimbabwe

Remittances are a lifeline for many Zimbabwean families, with monthly inflows exceeding $150 million.

According to the RBZ diaspora remittances hit a record $2.2 billion in 2023 making up 17% of the total foreign currency inflows into the country.

Last year, Zimbabwe witnessed a significant surge in diaspora remittances, with inflows reaching a record US$2,2 billion, representing a 22 percent increase from the US$1,8 billion recorded in 2024.

The UK, South Africa, US, Australia, Canada, and UAE are major sending countries of these funds.

While the UK remains the largest hub for Zimbabwe’s diaspora, the US is still a significant contributor.

A 5% tax will make it more expensive to send money back home for Zimbabweans. One possible result is that people will send less money to their families.