Trump orders post office review after attacks on Amazon

  • Trump orders post office review after attacks on Amazon

Trump orders post office review after attacks on Amazon

President Trump's recent broadsides against Amazon and the U.S. Postal Service may be written off by many as outrageous and meaningless lies, but the truth is that they are a significant and calculated step in the long-cherished conservative dream of privatizing the USPS. The task force will be chaired by Treasury Secretary Steven Mnuchin or his designee, according to the order.

The order does not specifically mention online shopping giant Amazon but Trump has complained that the company's deal with the USPS is a money loser for the service. Visit MarketWatch.com for more information on this news.

"Amazon has built its business model on the shoulders of the USPS and Trump is not just talking the talk but now walking the walk with this executive order as a first step, in going after this potential relationship", Daniel Ives, chief strategy officer and head of technology research at GBH Insights, said. "There's no doubt about that". David Vernon, an analyst at Bernstein Research who tracks the shipping industry, estimated in 2015 that Amazon was paying the postal service $2 per package, which is about half what it would pay publicly traded United Parcel Service Inc. and FedEx Corp.

But Amazon and its CEO, Jeff Bezos, have been frequent targets of Trump's attacks, with the president widely seen as targeting the company because Bezos owns The Washington Post, which has reported critically on the president. As stated by the 20 17 USPS fiscal announcement, the declining revenue of mail delivery is being cancel by sending and package delivery. Additionally, Postal Service corporate partnerships are reviewed annually by the Postal Regulatory Commission, an oversight agency.

On Twitter, Trump said that Amazon is "costing the United States Post Office massive amounts of money for being their Delivery Boy", a situation that puts "many thousands of retailers out of business". A 2017 analysis by Citigroup concluded that the Postal Service, which does not use taxpayer money for its operations, was charging below market rates as a whole on parcels. The order calls for an examination of the Postal Service's pricing, policies and workforce costs. The White House did not immediately respond to a request for comment sent outside regular office hours.