Mexico has significantly increased tariffs on imports from non-free trade agreement countries, such as China. For instance, the tariff on packages valued under $2,500 has risen from 19% to 33.5%, and the tax exemption for goods under $50 has been abolished. Besides tariffs, Mexico also levies a 16% value-added tax (VAT), and if the Mexican RFC tax number is not registered, a withholding tax of up to 20% may be imposed, with the total tax burden potentially reaching as high as 53.5%.