The president's dispute with Amazon reached a new level of tension this week, when Trump ordered a review of the finances of the US Postal Service. UU But the attacks seem to scale from here. Here is a brief summary of the fight.
Trump has never been silent about his dislike for Amazon. His tweets about the company go back years. In December of 2017, I was tweeting that Amazon was making the Postal Service "dumbest and poorest".
Why the United States Post Office, which is losing many billions of dollars a year, is charging Amazon and others so little for delivering their packages, enriching Amazon and making the Post Office more silly and poorer? I should be charging MUCH MORE! – Donald J. Trump (@realDonaldTrump) December 29, 2017
But the frequency of attacks seemed to increase recently on Twitter after an Axios report said Trump was "obsessed" with the company. Shortly after the report was published, Trump again pointed to the company, accusing it of paying very little in taxes, using the Postal Service as a "delivery person" and costing the country money.
I have expressed my concern with Amazon long before the elections. Unlike others, they pay little or no tax to local and state governments, use our postal system as a delivery driver (which causes a tremendous loss for the US) and put many thousands of retailers out of business. Donald J. Trump (@ realDonaldTrump) March 29, 2018
Over the next few days, he launched similar complaints about an alleged "scam" and attempted to link the e-commerce giant with the Washington Post, owned by Jeff Bezos.
While we talk about the subject, it is reported that the US Post Office. UU You will lose $ 1.50 on average for each package you deliver to Amazon. That amounts to billions of dollars. The Failing N.Y. Times reports that "the size of the company's lobbying staff has exploded" and that …- Donald J. Trump (@realDonaldTrump) March 31, 2018
… does not include the Fake Washington Post, which is used as a "lobbyist" and should register. If P.O. "It increased its package rates, Amazon's shipping costs would increase by $ 2.6 billion." This post office scam must stop. Amazon must pay the actual costs (and taxes) now! – Donald J. Trump (@realDonaldTrump) March 31, 2018
I am right that Amazon is costing the United States Post Office enormous amounts of money for being its delivery guy. Amazon must pay these costs (more) and not make them pay for the American taxpayer. Many billions of dollars. POST. the leaders have no idea (or do they?)! – Donald J. Trump (@realDonaldTrump) April 3, 2018
Amazon and the postal service
It is true that the Postal Service has serious financial obstacles, since Americans are sending less paper mail, even when increases in package delivery, where Amazon contributes, offset some of those losses.
Some of Trump's views on the company are partially true, although largely misleading. Amazon has faced complaints for years about how it collects state and local taxes. After long disputes over how online sales should be taxed, Amazon began collecting sales taxes last year in each state with a law on the books. (Meanwhile, cities have complained that they were excluded). However, in most states, the company still does not collect taxes on behalf of sellers in its third-party market platform. The tiered collection system has become another point of contention.
Trump's main complaint, however, is that the Postal Service is giving Amazon too good treatment at the time of delivery. There is, one might say, a point just buried in the idea. The Postal Service establishes agreements with important clients, and although we do not know the details of Amazon's tariffs, some analysts have suggested that companies could charge more. When Trump writes that the Postal Service will "lose" $ 1.50 per package, it seems to be referring to an analyst's report and the Wall Street Journal opinion piece (from an author linked to FedEx) that suggested that the USPS package business was operating below the "true" cost of some expenses. (When Trump cited the analyst's report, the author explained that the report said that the packages were sent below those costs in general, not due specifically to the Amazon deals, and that the figure was actually $ 1.46).
The Postal Service has described that image of its package business, a bright spot in its finances, as "inaccurate". The law requires the Postal Service to charge at least an equilibrium rate in its parcel deliveries.
Trump has argued without proof that The Washington Post is involved in attacks on him in the name of Bezos, who once offered to throw Trump into space in a rocket. Trump's dispute with Amazon is often seen as a proxy war in Bezos and the Post. Earlier this month, Vanity Fair reported that Trump, disregarding the advisors, was considering several ways in which he could pursue the company, encouraging investigations at the state level to cancel a major government cloud computing contract.
Instead, Trump apparently chose to issue the executive order on Thursday. The address does not mention Amazon by name, but it seems likely that the decision was driven by the company. The order creates a working group "to evaluate the operations and finances of the USPS". The work team has 120 days to provide findings and recommendations.
What that could mean for Amazon will only be clear later, and it will also take some time to see if Trump puts more pressure on reevaluating government links with the company.