Letters in limbo: Trump clouds hover over US Postal Service, may push it UK’s Royal Mail way

Postal services are more than just delivery systems. They are part of a country’s identity, history and public trust. In the United States, the US Postal Service (USPS), founded in 1775, is under pressure to privatise, a suggestion often made by President-elect Donald Trump, triggering debates about its future. Meanwhile, across the Atlantic, the UK’s Royal Mail, which dates back to the 1500s, has already been privatised and is now being sold to Czech billionaire Daniel Kretinsky’s EP Group. These two examples show different paths for postal systems: one is considering privatisation, while the other is already experiencing it.

USPS privatisation debate under Trump

During a news conference at Mar-a-Lago, President-elect Donald Trump hinted at privatising the USPS, calling the idea “not the worst” he’d heard, NBC News reported. His administration often criticised the USPS for financial losses, noting it hasn’t turned a profit since 2006. Trump even called the agency a “joke” and opposed federal aid during the Covid-19 pandemic, highlighting the struggle between its public service mission and financial challenges.

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Privatising the USPS would require major changes to its governance. The agency is overseen by a board of governors, with members nominated by the president and confirmed by the Senate. Under Trump, Postmaster General Louis DeJoy introduced a 10-year plan to “modernise” the USPS and tackle its financial troubles, sparking controversy. Republicans argue the USPS is inefficient, while Democrats, like Gerry Connolly, strongly oppose privatisation, warning of job losses and disruptions to essential services.

President Joe Biden’s decision to renominate Anton Hajjar to the USPS board of governors reflects the Democrats’ commitment to keeping the USPS a public service. Hajjar, a former lawyer for the American Postal Workers Union, represents the ongoing political clash between privatising the USPS and protecting its role as a public institution.

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Royal Mail: A journey from privatisation to foreign ownership

The UK’s Royal Mail tells a different story. According to CNN, privatised in 2013 under prime minister David Cameron’s government, the company has struggled with falling demand for letter deliveries, growing competition and financial losses. Its universal service obligation to deliver priority letters six days a week across the UK has added to these challenges.

Now, Royal Mail is being sold to Czech billionaire Daniel Kretinsky’s EP Group in a £3.6 billion deal. Kretinský has made binding promises to the UK government, including keeping Royal Mail’s headquarters and tax base in the UK for at least five years. EP Group has also pledged to uphold the universal service obligation and work fairly with workers’ unions.

Despite these commitments, concerns remain. Public trust in Royal Mail has declined, especially after the UK regulator Ofcom fined the company £10.5 million for missing delivery targets. Millions of late deliveries have raised doubts about whether private ownership can maintain service quality while staying profitable.

Public sentiment: Trust vs efficiency

The USPS and Royal Mail have something in common: deep public trust and historical importance. In the United States, a Pew Research Center survey found that USPS is one of the most popular government agencies, second only to the National Park Service. For many Americans, especially in rural areas, USPS is a vital service. Even private companies like FedEx and UPS depend on it for “last-mile” deliveries.

In the UK, Royal Mail has been a national symbol for centuries. However, its privatisation hasn’t been embraced by everyone. Recent delivery delays and a fine from Ofcom have added to public dissatisfaction, leaving many questioning if private ownership has truly improved the service.

Economic realities

Both USPS and Royal Mail face financial difficulties. The USPS is a government agency that earns money through services like selling postage and delivering packages. However, it hasn’t made a profit in almost 20 years due to high operating costs and tough competition from private companies.

Royal Mail was privatised to improve its finances, but it still faces challenges. There are ongoing demands to ease its universal service obligation to cut costs. Unlike USPS, which is still publicly controlled, Royal Mail’s sale to EP Group marks a full shift away from government ownership.

Workers and unions

Job security is a key issue in the discussions about both USPS and Royal Mail. In the US, privatisation could put hundreds of thousands of postal workers at risk, many of whom belong to unions. President Biden’s nomination of Anton Hajjar highlights the Democrats’ focus on protecting workers and opposing privatisation.

In the UK, EP Group’s promise to work with unions provides some reassurance, but doubts remain. Privatisation has often led to job cuts and worse working conditions, leaving Royal Mail employees worried about more instability under foreign ownership.

Is privatisation the answer?

The Royal Mail’s journey offers important lessons for the USPS discussion. While privatisation might bring short-term financial relief, it doesn’t ensure better efficiency or happier customers. The loss of trust in Royal Mail shows the dangers of focusing on profits over public service.

For USPS, the stakes are even greater. It plays a vital role in delivering mail and packages, especially in areas where private companies don’t operate. Privatisation could disrupt this service, create unequal access and put many jobs at risk.

Crossroads for postal systems

As debates about privatising USPS continue, Royal Mail’s experience provides important context. Trump’s comments have revived the discussion, and in the UK, the sale of Royal Mail to a foreign investor highlights the challenges of balancing profit with public trust.
The future of these historic postal systems raises broader questions about government control, privatisation and the role of institutions that serve the public.