Trump urged postmaster general to double rates on Amazon

President Trump has reportedly urged the U.S. postmaster general to double shipping rates for Amazon.com and other companies amid months of his continued criticism that the online retailer is costing the Postal Service “billions” of dollars in revenue.

Trump has personally met with Postmaster General Megan Brennan multiple times since 2017 to petition her for a hike on rates for Amazon and other firms that ship packages, The Washington Post reported Friday, citing officials familiar with the conversations.

The president’s demands came despite counsel from close advisers and top Postal Service employees that Amazon, the largest shipper of packages through USPS, actually helps keep it afloat financially.

According to the Post, Brennan explained to Trump in their conversations that the Postal Service is bound by its contracts with retail companies, noting that to change them would require a review by the independent regulatory agency that oversees the USPS.

Trump signed an executive order last month to create a task force to look into the Postal Service’s “unsustainable financial path.”

USPS has given Amazon a shipping discount due to the volume of packages it ships, but has not released details on its agreement with the retailer. Analysts have estimated that the company uses the Postal Service for about 40 percent of its shipping.

Trump also reportedly met with different groups of senior advisers including Treasury Secretary Steven Mnuchin and former National Economic Council Director Gary Cohn on the service’s financial dealings and whether Amazon was in fact costing the USPS “massive amounts of money,” as he once claimed in a tweet.

The president has frequently taken aim at The Washington Post, which Amazon owner Jeff Bezos purchased in 2013.

[The Hill]

Trump orders Postal Service review after blasting Amazon deal

After accusing Amazon for months of not paying its fair share of postage, President Trump has ordered a review of the US Postal Service’s finances via an executive order issued late Thursday night. The order calls for a task force to evaluate the operations and finances of the USPS. The order does not mention Amazon by name, but it seems clear that Trump is trying to back his claim that the USPS is losing “many billions of dollars a year” due to the financial arrangement with its biggest shipper of packages, or about $1.50 for every Amazon package it delivers.

Trump may very well be correct regarding the numbers, although his rage seems misplaced. Experts, and even Trump’s own advisers, have said that the enormous volume of packages shipped by Amazon have helped keep the Postal Service afloat. Rather, the long, slow decline in junk and first-class mail are the reasons for the USPS’s mounting financial losses. Trump’s executive order acknowledges this.

“A number of factors, including the steep decline in First-Class Mail volume, coupled with legal mandates that compel the USPS to incur substantial and inflexible costs, have resulted in a structural deficit,” the president says in the order. “The U.S.P.S. is on an unsustainable financial path and must be restructured to prevent a taxpayer-funded bailout.”

It’s unclear how quickly the task force will begin its review, but it has 120 days to respond to the president with a summary of its findings and recommendations. Trump created a similar commission last year to support his claims of widespread voter fraud in the 2016 presidential election — a claim thoroughly debunked by election experts from both parties. The commission was dissolved in January.

Trump often screams “FAKE NEWS!” on Twitter after The Washington Post, owned by Amazon CEO Jeff Bezos, publishes incriminating stories about Trump or his administration. Last week Trump calledThe Post “Amazon’s ‘chief lobbyist,’” a claim he’s fond of repeating. And during his presidential campaign, Trump saidthat Amazon had a “huge anti-trust problem” and “is getting away with murder, tax-wise.” It all makes you wonder what Trump’s real angle is.

[The Verge]

 

Advisers Gave Trump PowerPoint Presentation Debunking His Claims on Amazon. It Didn’t Work

Over the past week or so, President Donald Trump has ramped up his attacks against tech giant Amazon, claiming the company isn’t paying any taxes while accusing them of taking advantage of the Postal Service and costing the government billions of dollars.

In the wake of Trump’s personal war against Amazon, fact checkers and journalists have noted that the president’s claims are either unsupported or outright false. The thing is, Trump’s advisers tried early on to keep him from tossing out his Amazon falsehoods. It just didn’t take.

Per the Wall Street Journal, White House officials kept hearing Trump grouse about Amazon during his first months in office. Therefore, they decided to set up some briefings so he would speak factually and knowledgeably about the company in public.

Gary Cohn, his top economic adviser, and other officials gave PowerPoint presentations and briefing papers they believed debunked his concerns that Amazon was dodging taxes and exploiting the U.S. Postal Service.It made little difference. Mr. Trump persisted in attacks that ran counter to the material they had showed him.

A source also told WSJ that the presentation wasn’t “the narrative he wants,” adding that Trump “didn’t find it persuasive because he keeps saying it’s untrue.”

[Mediaite]

Trump continues Amazon attacks, says it costs USPS ‘massive amounts’

President Trump is not backing down on his argument that Amazon financially hurts the U.S. Postal Service (USPS), tweeting on Tuesday that the mega-retailer costs USPS “massive amounts of money.”

“I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy. Amazon should pay these costs (plus) and not have them bourne [sic] by the American Taxpayer. Many billions of dollars. P.O. leaders don’t have a clue (or do they?)!” Trump tweeted.

The president’s strike at Amazon on Tuesday follows a series of tweets in which he criticized the company’s shipping arrangements with USPS.

“Only fools, or worse, are saying that our money losing Post Office makes money with Amazon,” the president tweeted Monday. “THEY LOSE A FORTUNE, and this will be changed. Also, our fully tax paying retailers are closing stores all over the country…not a level playing field!”

The USPS does give Amazon a shipping discount because of the volume of packages it ships and has a deal with the USPS to ship packages on Sundays, but details of the arrangement have not been made public.

The accusation that Amazon is hurting the USPS has been disputed, with some fact-checkers saying that while the Postal Service is having problems, it is not because of Amazon.

Amazon owner Jeff Bezos has long been a target of Trump.

Bezos also owns The Washington Post, and Trump on Saturday accused him of using the newspaper as a “lobbyist” for Amazon. He has also often accused the Post of being “fake news.”

The Post and Amazon are two separate businesses and operate independently of one another.

[The Hill]

Trump keeps up Twitter assault on Amazon, this time criticizing its U.S. Postal Service contract

President Trump on Monday doubled down on his criticism of the U.S. Postal Service’s arrangement with Amazon, saying he would change how much the country’s largest online retailer pays in shipping fees.

“Only fools, or worse, are saying that our money losing Post Office makes money with Amazon,” he tweeted Monday morning. “THEY LOSE A FORTUNE, and this will be changed.”

The tweet marked the third time since Thursday Trump has lashed out against Amazon. The retailer’s stock was down 4.9 percent in morning trading.

Last week he attacked the retailer for paying “little or no taxes to state & local governments” and said the company uses “our Postal System as their Delivery Boy (causing tremendous loss to the U.S.)”

Two days later, he asserted the USPS loses an average of $1.50 on each Amazon delivery. “This Post Office *scam* must stop. Amazon must pay real costs (and taxes) now!” he tweeted.

Amazon collects local taxes in the 45 states that require it, although third-party sellers may have other arrangements.

Trump also incorrectly said The Washington Post is a lobbyist for the retailer. (The Post is personally owned by Jeffrey P. Bezos, the founder and chief executive of Amazon. The newspaper operates independently of Amazon.)

Amazon and USPS declined to comment on Trump’s tweet Monday morning.

The Postal Regulatory Commission, an independent federal agency, oversees the Postal Service’s pricing structure and reviews its contract with Amazon annually.

Amazon does receive a discount from the Postal Service, though the details of that arrangement have not been disclosed. An independent regulator reviews the contract every year to make sure it continues to be profitable for USPS.

Although Monday’s tweet was the first time the president implied he would try to change how much USPS charges Amazon, he has railed against its pricing structure in the past. In December, Trump attacked the company’s arrangement with the U.S. Postal Service and said the agency should raise the shipping rates it charges Amazon.

“Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer?” he tweeted. “Should be charging MUCH MORE!”

A fast rise in parcel deliveries — many of them from Amazon — has helped offset some of the Postal Service’s losses in recent years. In 2017, USPS delivered 589 million more packages than it did a year earlier, amounting to an 11.4 percent growth in volume and $2.1 billion increase in revenue. (Mail volume, meanwhile, decreased by about 5 billion pieces, or 3.6 percent.) Overall, the Postal Service reported a $2.7 billion loss last year on revenue of $69.6 billion.

[Washington Post]

Trump: Postal Service is ‘dumber and poorer’ for not charging Amazon more

President Donald Trump on Friday called on the United States Postal Service to charge Amazon and others “much more” for shipping, adding that the government agency is becoming “dumber and poorer” by not doing so.

“Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer? Should be charging MUCH MORE!” the president wrote on Twitter.

Amazon announced Wednesday that the company had a record-setting holiday season, though it is unclear whether that is what prompted the president’s critique.

Jeff Bezos, who is the CEO of Amazon and also owns The Washington Post, has been a target of Trump in the past.

The president — who has had an often-rocky relationship with the media — has also previously accused The Washington Post of fabricating facts and has called the paper a lobbyist for Amazon.

https://www.politico.com/story/2017/12/29/trump-postal-service-amazon-shipping-charges-319625