Trumps remarks echoed comparable remarks by him in April and introduced a series of attacks in 2018, when he claimed Amazon was costing the post workplace “billions.”Trump is right that the Postal Service is losing cash, but Amazon and other web e-commerce business arent always to blame for that. Previous analysis carried out by CNBC found Amazon might be conserving the post workplace from monetary demise, due to development in bundle shipping from online sellers like Amazon.
Jeff Bezos, CEO of Amazon and Republican presidential prospect Donald TrumpGetty ImagesPresident Donald Trump on Monday repeated his belief that Amazon is to blame for the U.S. Postal Services demise. “Amazon and other companies like it, they come and they drop all of their mail into a post workplace,” Trump said in an interview with “Fox & & Friends.” “They drop bundles into the post workplace by the thousands and then they say, Here, you deliver them. We lose $3 and $4 a bundle usually. We lose huge amounts of money.”The president was asked about concerns that the Trump administration is disrupting the post workplace in order to effect ballot in the November presidential election. The Postal Service has eliminated numerous mail-processing devices throughout the nation and cautioned lots of states that it may not be able to process mail-in ballots in time to be counted in the Nov. 3 governmental election. At the exact same time, it faces prevalent mail hold-ups and has actually seen its monetary troubles increase as a result of the coronavirus pandemic.House Speaker Nancy Pelosi, D-Calif., is calling your house back into session, cutting legislators summer season recess short as concerns grow amongst Democrats over whether the Trump White House is trying to weaken the Postal Service ahead of the election.Trump stated the post office could solve its monetary problems by raising delivery rates to balance out alleged shipment expenses fueled by online sellers. “This man is supposed to be so wealthy, so let him pay for it,” Trump added, appearing to refer to Amazon CEO Jeff Bezos. Amazon decreased to discuss Trumps remarks. Trumps comments echoed similar remarks by him in April and introduced a series of attacks in 2018, when he declared Amazon was costing the post office “billions.”Trump is best that the Postal Service is losing money, but Amazon and other web e-commerce business arent necessarily to blame for that. Previous analysis carried out by CNBC found Amazon may be saving the post office from financial death, due to development in package shipping from online retailers like Amazon. Amazon likewise counts on a series of carriers to deliver packages, such as UPS and FedEx, and is progressively building its own network of contracted delivery partners, which now amount to 1,300 firms.A major aspect behind the post workplaces continuing shortfall is a requirement that the USPS fund health benefits for its employees, which costs more than $5 billion each year. Other worker-related expenses, such as employees payment, change from year to year based on “modifications in actuarial presumptions, such as interest and inflation rates, and employee and senior citizen demographics,” as the USPS stated in its 2019 yearly report.The Postal Service has actually gained from a rise in plan shipments to Americans who remain inside since of the pandemic, but it has experienced continued declines in top-notch and organization mail, according to its latest financial outcomes.– CNBCs Jordan Novet contributed to this story.