Trump goes 'postal' on China
It hasn't been widely reported, but the Trump administration has opened a new front in its trade conflict with China. In looking out for America's interests, the U.S. has started the processes of withdrawing from a 144-year-old international postal body that today gives sizable discounts to Chinese merchants who ship small packages to the U.S.
Here's how Bloomberg News sums up the situation:
Arcane rules established by the 144-year old Universal Postal Union make it possible for a Chinese e-retailer to send a package across the Pacific to a customer in the U.S. at a lower cost than what an American competitor would spend to ship the same item to a neighboring state.
Obviously, this gives Chinese manufactures an leg up on their American competitors. This put puts American workers and even the United States Postal Service and private shippers like FedEx and UPS at a disadvantage.
The rationale for these reduced rates on small packages and first-class letters is to allow poor countries to pay less than wealthy ones. Perhaps that makes sense. But in any event, China cannot be considered a poor country in the same league as Botswana or Haiti. It's the world's second largest economy. Granting China lower postal rates is tantamount to giving an undeserved subsidy to a vicious economic competitor.
It seems that everywhere you look, in matters big and small, America has allowed itself to be picked clean by every other country on earth. Under past leadership from Clinton to Bush to Obama – nearly a quarter of a century – America has been like a sleeping Gulliver tied down by the petty Lilliputs of the world. Trump is changing this, which is one of the reasons he's called a "disruptive president." And if Trump didn't show up, you get the distinct feeling that the status quo would continue to allow Gulliver to sleep on. Because Trump won't stand for this is one of the reasons his favorability rating in foreign lands is so low. Of course. Others like riding the gravy train and take umbrage at being asked to pay their way.
My belief is that by 2020, Trump's MAGA initiatives will blossom in full and ensure him and those who support him huge re-election victories.