Trump Accuses Amazon Of Scamming Postal Service
President Donald Trump is continuing his attack against Amazon, accusing the company of scamming the US Postal Service.
"While we are on the subject, it is reported that the U.S. Post Office will lose $1.50 on average for each package it delivers for Amazon. That amounts to Billions of Dollars," Trump tweeted Saturday morning, according to CNN.
"The Failing N.Y. Times reports that 'the size of the company's lobbying staff has ballooned,' and that......does not include the Fake Washington Post, which is used as a 'lobbyist' and should so REGISTER," the President wrote. "If the P.O. 'increased its parcel rates, Amazon's shipping costs would rise by $2.6 Billion.'"
He added, "This Post Office scam must stop. Amazon must pay real costs (and taxes) now."
The Postal Service is losing money, but its package delivery service is profitable, unlike its letter delivery.
The Postal Service is required by law to cover its costs for delivering competitive products, such as packages for Amazon. The Postal Regulatory Commission, which oversees the service, set the appropriate share of the costs of package delivery at 5.5 percent a little more than a decade ago.
Since then, the service's delivery of packages has grown substantially, and the United Parcel Service argued in a submission to the commission in 2015 that a realistic appropriate share of costs for those deliveries should be about 24.6 percent.
A Citigroup analysis last year found that that difference would amount to about $1.46 per parcel, which might serve as the basis for Trump's $1.50 figure.