Trade war with China represents persisting United States concerns

Trump pulling U.S. out of international pact on postal rates

Trump pulling U.S. out of international pact on postal rates

Mr. Trump chose to remove a 144-year-old postal agreement with the Chinese that allowed Chinese businesses to send small packages to the United States at a discounted rate. The discounted rate cost the Postal Service more than $170 million a year.

The deal has allowed the country to flood the United States with cheap goods at shipping discounts of up to 70 percent, putting American companies at a disadvantage and straining the US mail system while fueling growth overseas, Taub said.

"This will begin a one-year withdrawal process, as set forth in the UPU Constitution", the White House said, adding the Department of State will seek to "negotiate bilateral and multilateral agreements" that resolve the problems related to reform the terms of the postal treaty.

China's Ambassador to the U.S. Cui Tiankai told "Fox News Sunday" host Chris Wallace that there is no trade war between the two countries, but then seemed to contradict himself by claiming America started it.

"This outdated arrangement contributes significantly to the flood of counterfeit goods and unsafe drugs that enter the country from China", Mr. Timmons said.

Also this week, China's intellectuals have expressed concerns over the Sino-U.S. trade war, with many calling for an end to the escalating tensions.

Nancy Sparks, managing director at delivery service company FedEx, said in 2015 that under the UPU's rate structure, "the haves pay the have nots".

The decision to remove the U.S. from the treaty represents another strike at China in the ongoing trade war, as the Trump administration attempts to force the country to make major economic changes and reduce the USA trade deficit with the country.

"He (Trump) wants that USA stays ahead, economically and is not taken over by China". "As it is now, with tariffs on half of China exports to the USA already announced, and with midterm elections in early November, we think the other half of the tariffs on exports will be beyond this year, and likely a long-drawn out affair", DBS said in its note.

The massive additional tariffs imposed by the United States on import of Chinese products worth more than Dollars 250 billion has not had any impact on the American economy, President Donald Trump said Wednesday.

The rise of worldwide online shopping has resulted in an increase in small packages being sent via the postal system, and U.S. firms say it can now cost more to post an item within the USA than it does to send a similar item from Shanghai to the US.

The officials, who briefed reporters on condition of anonymity, said postal rates would not change for at least six months, and that the USA would prefer to stay inside the union's system. As of 2018, United States has the world's largest economy and China being the second largest. A 1-pound package that costs the USPS about $10 to deliver can be mailed from China for just $2.50, per White House numbers.

Economists increasingly see future tariffs as likely to apply to all shipments from China to the United States, meaning Beijing is set to even further loosen financial taps.

"So, it's hard for them to do a deal, because they've had it so good for so long; it's a very hard thing for them to do", said the United States president when asked why he told the Chinese that they are not ready for a trade deal yet.

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