President Donald Trump talks about the administration’s response to the coronavirus disease (COVID-19) outbreak during the daily card virus work meeting at the White House in Washington, April 5, 2020.
Joshua Roberts | Reuters
President Trump said on Tuesday that Internet companies, including Amazon, are to blame for the decline of the US Postal Service.
The comments, which came during Tuesday’s coronavirus working group presentation at the White House, recall a series of attacks in 201
The comments came after a reporter asked the president for comments from the rep. Gerry Connolly, D-Va., Hinted that Trump had requested that $ 25 billion meant for the USPS be cut from Coronavirus Aid, Relief and Economic Security, or CARES, acting as Trump signed the law on March 27.
“This is the new thing. I’m the downfall of the postal service,” Trump said on Wednesday. “I’ll tell you who is the downfall of the post, is it these internet companies who give their stuff to the postal service … They drop everything at the post office and they say, ‘You deliver it. “And if they were to actually raise prices by a lot, you would find out that the post office can make money or break even, but they don’t, and I’m trying to find out why.”
In fact, USPS reported a net loss of $ 8.8 billion during the fiscal year ending September 30, 2019. However, the share of USPS revenue coming from delivery packages has increased while other sources of revenue, such as first-class mail and marketing mail, are falling.
A major reason for the Post Office’s continuing shortage, according to previous analysis by CNBC, is a requirement that the USPS provide health benefits to its workers. Other worker-related expenses, such as workers’ compensation, vary from year to year based on “changes in actuarial assumptions, such as interest rates and inflation, and demographics for employees and retirees,” as the USPS said in its 2019 annual report.
The Post Regulatory Commission monitors the USPS. Representatives from Amazon, China and USPS did not immediately respond to the request for comment.
At the same time, Amazon has protested the award of a major defense agreement to a rival, blaming Trump for the loss.
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