President Trump lashed out at Amazon on Saturday, accusing the retail giant of scamming the U.S. Postal Service over shipping costs and evading taxes.
“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,” Trump tweeted, following up on a tweet earlier this week
The president has ramped up his attacks on the retail giant in recent days, repeating concerns he voiced on the campaign trail about the company’s business practices, particularly as they relate to the U.S. Postal Service.
He has called on the agency to raise shipping rates for Amazon. Parcel delivery has become an increasingly important business for the Postal Service amid long-running declines in its first class mail service.
Despite the gains in its parcel delivery service, the agency has not been able to make up the losses from declines in its mail delivery business. Last year, the Postal Service reported a loss of $2.7 billion and revenue of $69.6 billion.
A Citigroup analysis last year indicated that the post office subsidizes every Amazon package delivered by $1.46. But Amazon argues that the Postal Regulatory Commission has consistently found that Amazon’s contracts with the USPS are profitable.
“Amazon has invested hundreds of millions of dollars in a network of more than 20 package sortation facilities that inject directly into the USPS last mile network bypassing most of USPS network,” Amazon said last year, according to Fortune Magazine. “This investment resulted in more efficient processes as well as thousands of jobs and related economic benefits in local communities.”
Axios reported last week that Trump disputes reports that the partnership is profitable.
“It’s been explained to him in multiple meetings that his perception is inaccurate and that the post office actually makes a ton of money from Amazon,” a source close to Trump told Axios.
Trump has also accused Amazon of failing to pay state and local sales taxes. In fact, the company does collect such taxes on products sold to consumers in states with sales taxes in place. Amazon does not collect taxes in all states on behalf of third party sellers that use the company as a marketplace.
that accused Amazon of “putting many thousands of retailers out of business.”
“That amounts to Billions of Dollars,” he tweeted Saturday. “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. 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!”
While Trump’s attacks on Amazon have resurfaced in recent days, the president has gone after the retail giant in the past. He called on the Postal Service to raise shipping rates for the company in December. And in 2016, while he was still a presidential candidate, Trump decried what he called Amazon’s “monopolistic tendencies.”