Tuesday, September 4, 2018

WTF: You Won’t Believe How Much China Cheats The U.S. Post Office On Shipping Costs

Until the UPU delivers fairer rates for American businesses, they will be stuck with an outrageous arrangement keeping their prices artificially high.
As the trade war between the United States and China continues unabated, President Trump assures the American people that China’s “unfair” treatment by will soon end. While eliminating tariffs is a good start to solving the problems facing American businesses, focusing on another sort of tariff may also prove useful.
Thanks to convoluted international postage regulations, it is cheaper for Chinese businesses to ship goods to American consumers than for American businesses to ship to American consumers. While this is just one of many factors contributing to China’s massive export edge over the United States, it is one of few that defy market logic.
Want to ship a 3-pound product to China from New York City or Washington D.C.? You’ll almost certainly pay at least $30 for the privilege of using the U.S. Postal Service (USPS). But that same package inbound would cost Alibaba less than $20 via USPS subsidies to China Post. Welcome to the strange, convoluted world of global postal pricing rules.
Read the rest of the story HERE.

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