WASHINGTON—The United States announced on Oct. 17 that it is preparing to pull out of an international postal treaty that allows China to ship packages to America at discounted rates. The move could escalate a trade dispute with China.
President Donald Trump argues that the 144-year-old Universal Post Union benefits China and other countries at the expense of U.S. businesses–making it cheaper to ship packages from Beijing to New York, than from San Francisco to the U.S. East coast, which particularly benefits Chinese manufacturers. The officials say the treaty is used by shippers of the narcotic fentanyl to the U.S. from China.