We review products independently, but we may earn affiliate commissions from buying links on this page. Terms of use. Did you know it costs more to ship a product across the street in America than it does to ship that same product from China on to American soil? If you don't believe me, just listen to this excellent NPR Planet Money podcast about Jayme Smaldone and his Mighty Mug. Also know that it's a situation the US government is now attempting to change. As the BBC reports, President Trump intends to withdraw the US from a 144-year-old postal treaty because it allows other countries, and in particular China, to ship things to the US at unfairly low rates. This may sound like just another addition to Trump's trade war, but international shipping has become increasingly unfair for the US. Shipping an item to another country is easy. You send the package from your country by paying for shipping in your local currency and the postal system takes care of the rest. The rates paid and the process of getting that package to its destination is governed by the Universal Postal Union (UPU). The unfair bit is the last mile of delivery. It's usually the most expensive, but the shipping paid typically isn't enough to cover it. For example, the cost of delivering an international package once it reaches the US may be close to $5, but the sender only paid $5 total and US delivery companies only get a small percentage of that. The same works in reverse, of course, but Americans buy significantly more from countries such as China than we ship back. The situation is made worse because certain countries are classed as developing nations and so they enjoy subsidized shipping. That's fine until you realize China is still classed as a developing country and therefore qualifies for those subsidized rates. As most exports from China head to the US, you can see how this works to the detriment of US companies (and the postal service). It's a ridiculous situation to be in when it costs less to ship from China than state-to-state or even street-to-street. The White House intends to renegotiate the postal treaty or quit altogether, with a notice of withdrawal already having been filed. China enjoying subsidized shipping rates is clearly something that needs to change, as that subsidy currently applies to all parcels weighing under 2kg (4.4lbs). Withdrawing completely from the postal treaty takes a year, but the preferable solution is to renegotiate before that happens. What does this mean for consumers? Most likely international shipping will become more expensive for those sending things to the US, and that cost may be passed on to customers. However, anyone shipping a parcel within the US would see no price changes.
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We review products independently, but we may earn affiliate commissions from buying links on this page. Terms of use. Did you know it costs more to ship a product across the street in America than it does to ship that same product from China on to American soil? If you don't believe me, just listen to this excellent NPR Planet Money podcast about Jayme Smaldone and his Mighty Mug. Also know that it's a situation the US government is now attempting to change. As the BBC reports, President Trump intends to withdraw the US from a 144-year-old postal treaty because it allows other countries, and in particular China, to ship things to the US at unfairly low rates. This may sound like just another addition to Trump's trade war, but international shipping has become increasingly unfair for the US. Shipping an item to another country is easy. You send the package from your country by paying for shipping in your local currency and the postal system takes care of the rest. The rates paid and the process of getting that package to its destination is governed by the Universal Postal Union (UPU). The unfair bit is the last mile of delivery. It's usually the most expensive, but the shipping paid typically isn't enough to cover it. For example, the cost of delivering an international package once it reaches the US may be close to $5, but the sender only paid $5 total and US delivery companies only get a small percentage of that. The same works in reverse, of course, but Americans buy significantly more from countries such as China than we ship back. The situation is made worse because certain countries are classed as developing nations and so they enjoy subsidized shipping. That's fine until you realize China is still classed as a developing country and therefore qualifies for those subsidized rates. As most exports from China head to the US, you can see how this works to the detriment of US companies (and the postal service). It's a ridiculous situation to be in when it costs less to ship from China than state-to-state or even street-to-street. The White House intends to renegotiate the postal treaty or quit altogether, with a notice of withdrawal already having been filed. China enjoying subsidized shipping rates is clearly something that needs to change, as that subsidy currently applies to all parcels weighing under 2kg (4.4lbs). Withdrawing completely from the postal treaty takes a year, but the preferable solution is to renegotiate before that happens. What does this mean for consumers? Most likely international shipping will become more expensive for those sending things to the US, and that cost may be passed on to customers. However, anyone shipping a parcel within the US would see no price changes.