Trump blames Internet companies like Amazon for the disappearance of the postal service


President Trump said on Tuesday that Internet companies, including Amazon, were responsible for the decline of the U.S. postal service.

The comments, which came during the Coronavirus task force briefing at the White House on Tuesday, point to a series of attacks in 2018, when Trump repeatedly blamed Amazon for hurting the post office, claiming once that Amazon uses the USPS as “their delivery person”.

The comments came after a reporter questioned the president over comments by rep Gerry Connolly, D-Va., Suggesting that Trump had asked that $ 25 billion for the USPS be cut from Coronavirus Aid, Relief and Economic Security, or CARES, act, which Trump signed on March 27.

“This is the new one. I’m the disappearance of the postal service, “said Trump Wednesday. “I’m going to tell you who the postal service is disappearing, are these Internet companies that give their stuff to the postal service … They drop everything in the post office and they say,” You deliver it. “And if they raised prices a lot, in fact, you would find out that the post office could make money or break even, but they don’t, and I’m trying to figure out why. “

The USPS indeed reported a net loss of $ 8.8 billion in the year ended September 30, 2019. However, the proportion of USPS revenue from shipping packages increased, while others revenue sources, such as first class mail and marketing mail, are falling.

One of the main reasons for the post office’s shortfall, according to previous CNBC analysis, is the requirement that the USPS pre-finance health benefits for its workers. Other worker-related expenses, such as workplace accidents, vary from year to year based on>, as noted by the USPS in its 2019 annual report.

The Postal Regulatory Commission oversees the USPS. Representatives from Amazon, the PRC, and the USPS did not immediately respond to requests for comment.

Meanwhile, Amazon protested the award of a major defense contract to a rival, accusing Trump of the loss.

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