New rates for the delivery of small packages from foreign postal operators will help U.S. manufacturers and retailers whose competitors now get unfair subsidies, a top White House trade adviser said.
The Postal Regulatory Commission recently approved the new rate structure but excluded private carriers such as FedEx Corp. and United Parcel Service Inc., which will have to negotiate separate agreements with the U.S. Postal Service.
New rates were required because of President Donald Trump’s order last year to overrule the low rates set by the Universal Postal Union that didn’t cover the USPS’s costs. Those rates, known as terminal dues, meant the USPS ended up subsidizing e-commerce from countries such as China, the Trump administration said.