President Trump's 'Post Office Scam' Feud With Amazon Just Got Hotter

Trump orders review of US Postal Service, having denounced Amazon shipping deal

Trump orders review of US Postal Service, having denounced Amazon shipping deal

Amazon, which Trump has criticized recent months was not mentioned by the order. E-commerce revenue provides "essential support to pay for the network and infrastructure that enables us to fulfill our universal service obligation", David Partenheimer, a spokesman for the Postal Service, wrote in a January op-ed. "He repeated a claim that the postal service loses "$1.50 on average for each package it delivers for Amazon" and said "only fools, or worse" believe the Postal Service makes money from doing business with Amazon.

The task force would submit a report on its findings and recommendations to Trump within 120 days since the issuing of the executive order. The White House did not immediately respond to a request for comment sent outside regular office hours.

Postal Service experts and even Mr Trump's own advisers have privately urged him to back off the accusations, noting that the huge number of packages shipped by Amazon is actually helping to keep the Postal Service financial solvent.

Still, Trump's claim the service could be charging more may not be entirely far-fetched. That includes examining the postal service's role in competitive markets, the state of its business model, workforce, operations, costs and pricing.

But Amazon and its CEO, Jeff Bezos, have been frequent targets of Trump's attacks, with the president widely seen as targeting the company because Bezos owns The Washington Post, which has reported critically on the president. Additionally, Postal Service corporate partnerships are reviewed annually by the Postal Regulatory Commission, an oversight agency.

Amazon regularly uses the Postal Service to complete what's called the "last mile" of delivery, with letter carriers dropping off packages at some 150 million residences and businesses daily.

The executive order come after the president accused Amazon of not paying a fair share of postage.

The USPS, which is supposed to be an independent, self-sustaining agency, has been financially struggling for years and reportedly has lost $65 billion since the 2008 recession, Reuters reported.

Ives added the jury is still out on what the executive order will result in, but it's clear that Amazon is "in the cross hairs of Trump".

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