The U.S. plans to pull out of an international postal treaty, because it allows China to ship packages to the U.S. at discounted rates. That, according to the Administration, costs the U.S. Postal Service about $170 million a year.

President Trump says the Universal Postal Union agreement benefits China and other countries at the expense of U.S. businesses: It’s cheaper to ship merchandise from Beijing to New York than from San Francisco to New York.

“The current system has led to the United States subsidizing the imports of small packages from other countries,” Jeff Adams, spokesman for the U.S. Postal Service, told the Washington Post.

Administration officials say the U.S. is willing to renegotiate the 144-year-old treaty, but will leave UPU if no agreement is reached. The treaty requires a year for a country to withdraw. Withdrawl might affect international rates for U.S. mailers, but not for at least six months.

“President Trump deserves tremendous credit for the administration’s focus on eliminating the anti-US manufacturer subsidy China receives from the U.S. Postal Service,” Jay Timmons, the president of the National Association of Manufacturers, said in a statement. “This outdated arrangement contributes significantly to the flood of counterfeit goods and dangerous drugs that enter the country from China.”

This comes as the trade war between the U.S. and China gains intensity, although the White House says it is separate.

UPU director Bishar Hussein says he will seek a meeting with U.S. officials.