Under direction from President Trump, the United States is to withdraw from the Universal Postal Union (UPU), a UN treaty that reduces rates for foreign postal deliveries in the US.

According to reports, US firms say that it can cost more to post an item within the United Stated than it does to send the same sized parcel or letter to the USA from China.

Originally designed to support poorer nations’ economies, the UN treaty sets lower international rates from certain countries but the US says that China has been abusing this, saying it puts US businesses at a disadvantage.

It is hoped by the US administration that the notice of withdrawal will force a better deal.

Commenting on the story, ParcelHero’s Head of Consumer Research, David Jinks MILT said, “Trump’s bomb-shell could result in postal chaos if other countries decide to follow suit.”

“The UPU is paying the price for failing to raise the ultra-cheap rates China pays for postage to the West at its recent Extraordinary Congress.”

“Trump threatened to impose US postal dues unilaterally if the UPU failed to agree new rates, and now the Financial Times reports he is kick-starting the year long process.