EBay was first to exploit terminal dues to create special postal rates for Chinese companies selling into the United States and Europe known as ePacket, and now President Trump may upend the system on which those rates depend. It is also an attempt to save American taxpayers' money.
"If negotiations are successful, the administration is prepared to rescind the notice of withdrawal and remain in the UPU", she said.
But, he adds, "pulling out will have lots of nasty side implications".
"We're no longer sure the discussion is about tariffs. There could be a temporary loss of access to the worldwide mail system if alternatives are not arranged in time". The UPU manages the basis by which a letter from one country is delivered to another. This is in terms of, again, the Trump administration themes, we were dealing with a multilateral organisation, one vote out for 193.
The White House said the United States will pull out of the agreement unless the governing body that regulates foreign mail acts quickly to end the highly subsidized rates that allow e-commerce businesses in countries such as China to undercut American competitors.
Small businesses, commercial shipping companies and USA manufacturers have said the postal program gives Chinese vendors a significant advantage, especially on small, high-value items including electronics and clothing. Interests like the National Association of Manufacturers have applauded the administration for taking the first step towards ditching the "outdated" agreement that the group says is partially responsible for a "flood of counterfeit goods" from China.
The US is concerned about how the organization sets the rates that postal operators in different countries charge one another for handling foreign mail.
"That said, the U.S. administration's decision to serve notice on a possible UPU withdrawal highlights the importance of ensuring that global governance systems are modernised in line with the realities of today's economy". We will continue working with all members to contribute to the development of the worldwide postal industry, ' the spokesperson said.
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.
"It's not at the level that Mr. Trump and others want it, but we're close".
Secondly, in order for the Post Office to make up the losses on these foreign packages, it also raises the rates on Americans who want to send foreign packages overseas, and that hurts America's exporters.
The group said the discounts amount to a subsidy for Chinese shippers that cost the US Postal Service US$170 million past year.
The "system creates winners and losers", the report's author's concluded, especially China's national postal service and "Chinese online retailers in the lightweight, low-value package segment at the expense of the U.S. Postal Service and American retailers".
Compare that to other fronts in Trump's trade war. According to the U.S. Census Bureau, Americans bought $505 billion in goods from China in 2017 while exporting just $130 billion worth of products to China - a trade imbalance the American president hopes to rectify.
Mr. Trump has made a point of cutting America's global ties. All these provide ammunition for China, too, in fighting the trade war.