A trade war between China and the United States is gaining momentum. It threatens not only to further deterioration of relations between the two countries, but another price spike for consumers, reports NBCnews. Recently Donald trump has said that the current postal agreement undermines the ability of the U.S. postal service and contributes to flood the U.S. market with cheap Chinese products.
Americans now can receive a small parcel by sea from China at a price well below that requested by local authorities for the delivery of the same packet, for example, from Indiana to new York. Unbelievable but true: sending packages from the US to China is much more expensive than back.
Trump announced the release of the postal contract is part of his plan to punish China for «unfair trading conditions». American manufacturers and service delivery, the long time required to equalize the conditions on the playing field will surely benefit from the new policy of the White house.
The US is a member of the universal postal Union (Universal Postal Union — UPU) in 1874. The universal postal Union is one of the UN institutions regulating international mail (mail and parcels up to 2 kg) and the price in almost 200 countries. Since 1969, developing countries of Africa and Asia, including China, was established lower tariffs for the countries of North America and Europe. In other words, UPU subsidized shipping from developing to developed countries by imposing higher tariffs in the past. It is thanks to this formula, Chinese online stores can afford sending orders abroad.
While the White house said only about his intention to withdraw from the Universal Postal Union and the willingness to stay there in case of revision of contract terms favorable to the U.S. side. If the U.S. still come from the UPU, the country will begin to set their own tariffs for the delivery of mail from all over the world. However, so far we are talking only about China.
