Is sourcing and shipping from China about to get a lot more expensive?

President Trump has mentioned plans to withdraw from the Universal Postal Treaty. Under the treaty, the U.S. subsidizes international shipping for small parcels sent from China to the U.S.

This has made it cheap for Chinese manufacturers to ship directly to U.S. consumers. But American manufacturers don’t receive the same benefits. And many believe this discrepancy gives Chinese sellers an unfair advantage over their American counterparts.

Chinese companies now make up about 60% of packages shipped into the U.S. And many websites offer free shipping from China due to the low rates. Many experts see this as an attempt to pressure China and negotiate better terms rather than an actual attempt to leave the treaty.

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