Another example of the Trump effect surfaced as Western Union reported a 12% decline in revenue from international money transfers this year.
Historically, immigration—both legal and illegal—has been the primary source of U.S. dollars being sent abroad, overshadowing the government’s foreign aid efforts. However, under President Donald Trump’s administration, there seems to be a drop in the demand for Western Union’s services.
Recently, Western Union’s CEO, Devin McGranahan, indicated that the company’s cash transfers to countries like Mexico, El Salvador, Peru, and Ecuador have notably decreased, as reported by CPR News.
“Recent changes in policy have greatly diminished border crossings, stepped up enforcement like workplace inspections and deportations, and fostered a sense of uncertainty within immigrant communities. These developments are influencing customer choices,” McGranahan noted during a conference call with investors.
As a result of these business challenges, Western Union’s stock has dropped by 15% this year.
“We’re witnessing events that really shake their foundations… The essence of their business lies in transfers from the U.S. to Latin America, and we’re seeing a downturn across the board,” commented business analyst Brett Horn to CPR News.
McGranahan’s recent remarks aren’t the first to draw attention to the sharp drop in remittances to foreign nations.
In August, a report noted that remittances from Mexico decreased by over 15% in 2024.
Interestingly, the total remittances from the U.S. to Mexico have reached about $63 billion over the last year, a decline when compared to the sums from both 2023 and 2024.
Several other nations also welcome substantial U.S. dollar inflows.
For instance, Nicaragua received $373.5 million in remittances in January 2025, with a World Bank report indicating that these remittances constituted 27% of Nicaragua’s GDP in 2024.
Other countries that benefit from significant cash transfers from U.S. expatriates include El Salvador ($8.479 billion in 2024), Peru ($4.945 billion), Ecuador ($6.54 billion), and India ($135.46 billion).
By comparison, the U.S. government allocates approximately $80 billion in direct foreign aid each year.
While many critique the foreign aid enacted by Congress, suggesting it doesn’t yield benefits for the U.S., remittances appear to detract from domestic interests. Essentially, this is money that bypasses local businesses, schools, or communities and goes directly to support other countries.
