Trump's Mass Deportations Would Also Cost Mexico Billions of Dollars, Economist Says

President-elect Donald Trump's intention to conduct mass deportations once he takes office could have a large impact in the country's economy. Not only they would cost billions to carry out, but could also potentially slash 6.8% of the country's GDP, according to a new report.

However, they would also have a large economic impact on Mexico, set to bear the brunt of the operation's receiving end. Ismael Plascencia López, an economist with the Northwest Mexico Federation of Economists, told Border Report that even if the Trump administration manages to deport a portion of the some 11 million undocumented immigrants living in the U.S., the cost for Mexico will be a large one.

He explained that the country would have to deal with the cost of caring, feeding, housing and transporting deportees, likely including many from third countries. "It's going to be a blow just in terms of the number of people sent here, but what about all those countries that refuse to take in their own people, they will likely end up in Mexico, you have to care for them as well," he told the outlet.

The Claudia Sheinbaum is already negotiating with regional counterparts to take deportees from third countries and reduce the expected burden on the country. The intention was confirmed by President Claudia Sheinbaum, who said last week that Foreign Minister Juan Ramon de la Fuente is "speaking to some other countries whose residents cross our territory to get to the northern border."

Asked about the reports earlier this month, Sheinbaum said in her daily press conference that her government hopes to "reach an agreement with the Trump administration so that, in case these deportations happen, they send people from other countries directly to their countries of origin."

Guatemala is reportedly the first country to show willingness to receive U.S. deportees from third countries, Reuters has reported. The decision comes as the administration of Bernardo Arevalo de Leon seeks to have smooth relations with its incoming American counterpart.

Concretely, Guatemala would receive citizens from other Central American nations, which constitute a large portion of those making their way up north. "We want to be part of the solution," a Guatemalan official who requested anonymity told Reuters.

But even if Mexico manages to avoid taking a large amount of foreigners, Plascencia López said the country will also be impacted by lost remittances, which represent a sizable percentage of the country's GDP. Mexico's central bank informed that migrants sent back over $63 billion from the U.S. last year, and that the figure up to October of 2024 was almost $55 billion. "This will hurt Mexico," the economist concluded.