KINGSTON, Jamaica — International money transfers from the United States (US) will now be subject to a one per cent tax, which a local wealth management company is warning could pose challenges for Jamaican families that depend on remittances.

The tax was imposed with the passage of US President Donald Trump’s One Big Beautiful Bill on July 3, and NCB Capital Markets says that Jamaicans may face new financial hurdles because of it, in research notes published on the company’s website entitled ‘Pay More to Send Money Back Home: Senate Bill Imposes Tax on Remittances’.

It cited Caribbean-American leaders and immigrant advocates who warn that the remittance tax could reduce the flow of funds sent through official channels, “deepening economic challenges for families who depend on this critical financial lifeline.”

NCB Capital Markets pointed out that though the tax was scaled back from a proposed 3.5 per cent, the bill does not provide exemptions for legal US citizens.

“Although intended to target non-citizens, particularly those working in the country without authorisation, the tax would also affect many immigrant families who rely on formal channels, such as banks and money transfer operators, to support relatives abroad,” NCB Capital Markets said in the research notes.

The wealth management company warns it could also lower the overall amount of money sent into the region, money that makes up a chunk of the region’s gross domestic product (GDP).

“For Jamaica, the US is the largest source market for remittances, accounting for around 70 per cent of all remittances. Furthermore, remittances contribute about 15 per cent to 18 per cent of GDP, making them significant for economic growth,” NCB Capital Markets said.

It warns that the potential slowdown in remittance transfers could harm economic growth.

Donald Trump is expected to sign the bill at an Independence Day picnic at the White House on July 4th.