Trump renews Amazon attack
President slams post office deal despite profits
WASHINGTON — President Donald Trump is again attacking online retailer Amazon.com, calling its business deal with the U.S. Postal Service to deliver packages a money-losing agreement that hurts U.S. taxpayers. Federal regulators, however, have found the contract to be profitable.
In tweets Saturday, Trump said “the U.S. Post Office will lose $1.50 on average for each package it delivers for Amazon. That amounts to Billions of Dollars.”
He added: “If the P.O. ‘increased its parcel rates, Amazon’s shipping costs would rise by $2.6 Billion.’ This Post Office scam must stop. Amazon must pay real costs (and taxes) now!”
Amazon has been a consistent recipient of Trump’s ire. He is sore because its founder, Jeff Bezos, owns The Washington Post, which Trump has labeled “fake news” after the newspaper reported unfavorable developments during his campaign and presidency.
Trump made the link himself in Saturday’s tweets, accusing Amazon of using the “Fake Washington Post” as a lobbyist. The Post and Bezos have responded to Trump’s lobbyist claims in the past by declaring that Bezos is not involved in any journalistic decisions at the paper. Amazon.com Inc. and The Washington Post declined to comment Saturday.
Amazon lives and dies by shipping, and an increase in the rates it pays could certainly do some damage. Amazon sends packages via the post office, FedEx, UPS and other services.
Boosted by e-commerce, the Postal Service has enjoyed double-digit increases in revenue from delivering packages, but that hasn’t been enough to offset pension and health care costs as well as declines in first-class letters and marketing mail.
In arguing that the Postal Service is losing money on delivering packages for Amazon, Trump appears to be citing some Wall Street analyses that say the service’s formula for calculating its costs is outdated.
A 2017 analysis by Citigroup concluded that the Postal Service was charging below market rates on parcels. Still, federal regulators have determined the Amazon contract to be profitable each year.