Amazon has been a frequent target of Trump since before the 2016 election.

Another morning, another tweet from President Donald Trump about Amazon.

For the fourth time in six days, the president on Tuesday fired off a tweet against one of his favorite targets, again saying that Amazon is taking advantage of its delivery partnership with the US Postal Service, with taxpayers shouldering the costs.

Trump is highlighting an issue that two sides see differently. Some perceive Amazon as a big benefit for the Postal Service, bringing it more business at a time that letter deliveries are slumping. Others argue that the Postal Service isn’t charging Amazon and other shippers the full amount it should for parcel deliveries.

The Postal Accountability and Enhancement Act in 2006 made it illegal for the Postal Service to ship parcels at below cost. Additionally, Postal Service partnerships are reviewed annually by the Postal Regulatory Commission, an oversight agency.

Despite those protections against below-market rates, a widely circulated Citigroup analysis from last year claimed that the Postal Service wasn’t considering billions of dollars in benefits payments in its accounting. Citigroup argued that the Postal Service needed to raise its prices or else taxpayers will have to cover the additional costs.

If the Postal Service were to raise prices, it’s likely other shippers will pay more, along with Amazon. Plus, customers may also face higher retail prices as costs are passed down to them.

Amazon, which has remained mum amid the recent round of Trump tweets, declined to comment for this story. Shares in the Jeff Bezos-led company were essentially flat Tuesday, after dropping about 5 percent Monday.

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Source: CNET

On – 03 Apr, 2018 By

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