Pride Turns Radical, Trump Backs Down and Tax Revenues Surge

Mexico Decoded’s weekly briefing makes sense of the news that matters.

1. Trump Walks Back Remittance Tax. Migrants Don’t Buying It

President Trump threatened a sweeping 3.5% tax on remittances, then quietly imposed just 1% on the 1% sent in cash.

Decoding it:
But the damage was done: fear of renewed crackdowns and Trump’s unpredictability made remittances to Mexico fall 4.6% in May —the sharpest drop in a decade.

2. Tax Revenues Surge —Matching Gains from Mexico’s Last Big Reform

Mexico’s tax authority reported an 8.2% revenue jump in the first five months of 2025, equaling the boost seen after the country’s most ambitious fiscal reform nine years ago.

Decoding it:
The surge stems from tighter controls on multinational companies and increased royalty payments. Sheinbaum’s argument is gaining ground: enforcement may matter more than new taxes. The oligarchy hears footsteps.

3. Parallel Pride March Challenges Corporate Co-optation

Mexico City’s 47th Pride saw a historic first: a parallel march moving in the opposite direction to denounce the event’s commercialization and state co-optation.

Decoding it:
Protesters called out corporate “pinkwashing” and linked LGBTQ+ struggles to broader causes, including solidarity with Gaza. Both marches greeted each other in passing —defiant, but in Mexico City’s uniquely loving way.

Source: Eneas de Troya

4. Mexico’s Security Reforms Expand Military Power

Fast-tracked legislation granted Mexico’s Security Minister broad surveillance and policing powers, while placing the National Guard under full military control.

Decoding it:
Corporate media spent the week pushing a false narrative of unchecked government spying —unsurprising, given vested interest in shielding tax evasion from scrutiny.

5. Peso Faces Pressure as U.S. Tariff Pause Nears End

The Mexican peso may weaken 5.5% over the next year, according to a Reuters poll, as a temporary U.S. tariff freeze ends on July 9.

Decoding it:
The peso’s recent strength was underpinned by a soft dollar, USMCA stability, and the freeze on tariffs. Its expiration reintroduces uncertainty, especially as investors brace for more volatile trade relations.