In another example of the Trump effect, money transfer giant Western Union is reporting that its revenue from cash transfers to locations outside the U.S. has seen a 12 percent decline this year.
Migrants living in the U.S. both legally and illegally have traditionally been the greatest source of U.S. dollars flowing out of America and into foreign nations, even dwarfing the amount of foreign aid lavished on the world by the U.S. government. But with Donald Trump’s focus on immigration, Western Union is seeing far fewer customers needing their services.
Last week, Western Union CEO Devin McGranahan told investors that the company had seen a huge decline in cash transfers to Mexico, El Salvador, Peru, and Ecuador, according to CPR News.
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“Recent policy changes have led to a substantial decline in border crossings and an increase in enforcement actions including workplace inspections and deportations which have created uncertainty and hesitation within migrant communities. These developments continue to impact customer behavior,” McGranahan said during the call with investors.
The loss of business sent Western Union’s stock down 15 percent this year.
“We’re seeing this kind of an event that really hits them in the heart … The core of their business is U.S. to Latin America, and we’re seeing it getting hit across the board,” business analyst Brett Horn told CPR News.
The remarks last week by McGranahan are not the first to note the large drop in cash transfers to foreign nations, which are often termed “remittances.”
In August, the Latin Times noted that remittances from Mexico dropped more than 15 percent over 2024.
The amount sent by foreign nationals living in the U.S. is incredible, too. In total, about $63 billion has been sent in remittances from the U.S. to Mexico in the last 12 months — and that is less than 2023 and 2024’s totals.
Other countries are also the happy recipients of hundreds of millions in U.S. dollars.
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In January 2025, Nicaragua received $373.5 million in remittances, for instance. A World Bank report found that remittances amounted to 27 percent of Nicaragua’s Gross Domestic Product (GDP) in 2024.
Other nations receiving huge amounts in cash sent home by foreign nationals living in the U.S. include El Salvador ($8.479 billion in 2024), Peru ($4.945 billion), Ecuador ($6.54 billion), and India ($135.46 billion).
By contrast, the U.S. government only lays out about $80 billion a year in direct foreign aid.
While many criticize foreign aid doled out by Congress, claiming that the U.S. doesn’t really benefit from the expenditures, remittances are fully a detriment to America. It is money that does not go to benefit our local stores, our schools, our cities, or anything else. It is cash summarily sent away to benefit other countries.
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