Trump Attacks US Postal Service: 'Dumber and Poorer'

He wants to know why USPS doesn't charge Amazon more to deliver packages
By Michael Harthorne,  Newser Staff
Posted Dec 29, 2017 2:49 PM CST
President Donald Trump speaks as he meets with members of the US Coast Guard, who he invited to play golf, at Trump International Golf Club, Friday, Dec. 29, 2017, in West Palm Beach, Fla.   (AP Photo/Evan Vucci)

(Newser)

“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!” President Trump tweeted Friday. While attacking Amazon—and founder Jeff Bezos—is nothing new for Trump, it's unclear why he dragged the US Postal Service into it, the Washington Post reports. A Citigroup report recently concluded that USPS loses about $1.46 on every Amazon shipment it delivers. Amazon denied that report at the time, stating its "contracts with the USPS are profitable." According to USA Today, Trump's tweet sent Amazon stock fractionally lower Friday afternoon.

USPS, which isn't funded by tax dollars, operates at a loss. Reuters reports it lost $2.74 billion in 2017 and has rung up a deficit of more than $61 billion since 1971. However, package shipment is one of the few areas—if not the only area—where USPS revenue is increasing. USPS' revenue for package shipment was $19.5 billion in 2017—up 44% since 2014. Earlier this month, the Postal Regulatory Authority gave USPS permission to up the price of a first-class stamp by 2% over the rate of inflation. That should eventually increase shipping costs for Amazon and others. But Amazon, which also uses FedEx and UPS to deliver its packages, has reportedly been testing its own delivery service.

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