In an interview on Monday, President Trump doubled down on a dubious assertion that Amazon (AMZN) - Get Amazon.com, Inc. Report is the cause of the United States Postal Services's financial difficulties.
Speaking to Fox & Friends Trump said that: “[Amazon and other companies] drop packages into the post office by the thousands and then they say, ‘Here, you deliver them.’ We lose $3 and $4 a package on average. We lose massive amounts of money.”
That echoed an earlier statements by Trump that Amazon was costing the USPS "billions," although he did not cite any specific evidence for that. In 2018, Trump also inserted himself into a proposal by the USPS to raise rates for Amazon packages by 9% to 12%.
Amazon uses a range of package delivery services to deliver its packages, including FedEx, UPS and USPS, and is also building out its own delivery infrastructure and network of providers.
USPS loses money, but indicated in its 2019 annual report that that a primary factor for its financial position was the rising cost of health care benefits and other personnel-related expenses, not burdens imposed by e-commerce firms such as Amazon.
"Significant declines in our mail volumes as the result of the pandemic were largely offset by corresponding growth in our package business, but the reality remains that the Postal Service is in a financially unsustainable position absent significant fundamental change," said Postmaster General and CEO Louis DeJoy in USPS's latest quarterly report.
Trump appointed DeJoy as Postmaster General in July in a move seen by critics as an attempt to undercut the USPS, particularly ahead of the November election, in which many voters are likely to cast votes by mail.
“These changes are happening because there’s a White House agenda to privatize and sell off the public Postal Service,” said Mark Dimondstein, president of the American Postal Workers Union at the time, claiming that the Trump Administration was deliberately trying to degrade the service.
Amazon shares were rising 1.2% to $3,184.71 on Monday afternoon.