President goes after Amazon over postal delivery — again
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 with Amazon 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 lives and dies by shipping, and an increase in the rates it pays could certainly do some damage. Amazon sends packages via the Postal Service, FedEx, UPS and other services.
But while the U.S. Postal Service has lost money for 11 years, package delivery — which has been a bright spot for the service — is not the reason.
In arguing that the Postal Service is losing money on delivering packages for Amazon, Trump appears to be citing some Wall Street analyses that argue the Postal Service’s formula for calculating its costs is outdated. A 2017 analysis by Citigroup did conclude that the Postal Service was charging below market rates as a whole on parcels. Still, federal regulators have reviewed the Amazon contract with the Postal Service each year and determined it to be profitable.
A spokesman for the U.S. Postal Service declined to comment. An independent agency, it does not use taxpayer money for its operations.
Meanwhile, Trump blasted California Gov. Jerry Brown on Saturday for his pardon of five exconvicts facing deportation, including two who fled the Khmer Rouge regime in Cambodia with their families four decades ago.
In a tweet, Trump referred to Brown as “Moonbeam,” referencing a nickname a newspaper columnist coined for him in the 1970s. Trump then listed the ex-convicts' crimes before they were pardoned Friday. They include misdemeanor domestic violence, drug possession, and kidnapping and robbery.
A spokesman for Brown responded to a request for comment with more information about the five men but did not directly address Trump's criticism.
In a news release about the pardons Friday, the governor's office said that “those granted pardons all completed their sentences years ago and the majority were convicted of drugrelated or other non-violent crimes.”