Trump Takes Swings at Amazon
Among the growing list of corporations to receive backlash from President Donald Trump is Amazon.
On Saturday, the President tweeted, “It is reported that the U.S. Post Office will lose $1.50 on average for each package it delivers for Amazon.” The President elaborated on how the online retailer was taking advantage of the USPS’s low-cost shipping services.
By offering low cost and expedited shipping options, the nation’s government-regulated postal service reported a net loss of $2.7 billion in 2017. Amazon has favored USPS for what it calls its “last mile” delivery services, a speciality that allows the company to send packages to residential areas and business centers around the country in a timely manner.
Amazon’s latest contract with USPS, signed in 2015, grants the online retailer a discount on the volume of packages it delivers. Analysts estimate that the agency charges Amazon approximately $2 per package, about half the rate charged by the other shipping service giants, such as UPS or Fedex.
This is not the first time the President has attacked the ever-growing online retailer. Last August, President Trump elaborated how Amazon was hurting stores and small businesses, describing in a tweet how “[retails] in towns, cities, and states throughout the U.S are being hurt.” Amazon earned more than $10.5 billion from its merchants last year, as businesses and storefronts continued to close.
In the middle of the President Trump’s feud with Amazon stands its CEO, Jeff Bezos. Also the owner of the newspaper The Washington Post, both Bezos and the publication were targets of the President’s recent tweets and comments. Trump had previously discussed how the newspaper had covered him in an unfavorable manner, tweeting, “The #AmazonWashingtonPost, sometimes referred to as the guardian of Amazon not paying internet taxes (which they should) is FAKE NEWS!”
Additionally, the President has referred to the news outlet as “Amazon’s chief lobbyist,” and accused Bezos of having input on its headlines. Marty Baron, the executive editor for the newspaper, denied Trump’s comments, saying, “As for the coverage, he [Bezos] doesn’t get involved in it at all—not what stories to do or what not to do; he doesn’t comment on any stories, including about Amazon.”
Last Thursday, President Trump signed an executive order for the USPS to undergo an audit and review its shipping practices. Politicians on Capitol Hill also commented on the mail carrier’s relationship with Amazon. After a Senate confirmation hearing for potential USPS board member nominees, Senator Rand Paul (R-KY) said “there was room for improvement [in their relationship].”