Trump Goes 'Postal' On Amazon In Tweet Over Fees
President Donald Trump lashed out at Amazon.com (AMZN) and the U.S. Postal Service in a tweet Friday, saying the e-commerce leader should pay higher fees for package deliveries.
X Amazon has previously been accused of underpaying the Postal Service for deliveries, a charge leveled in July by Josh Sandbulte of Greenhaven Associates in a Wall Street Journal article.
Amazon at the time denied the claim, saying its partnership with USPS is reviewed annually by the Postal Regulatory Commission, which “has consistently found that Amazon’s contracts with the USPS are profitable.”
“Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer? Should be charging MUCH MORE!” Trump tweeted Friday morning.
Amazon uses the U.S. Postal Service for completing last-mile deliveries, with postal carriers dropping off packages at about 150 million residences and businesses daily.
Amazon and its chief executive, Jeff Bezos, have been frequent targets of Trump over taxes and jobs. Bezos owns the Washington Post, which has written many stories critical of the Trump administration.
“Amazon is doing great damage to tax paying retailers. Towns, cities and states throughout the U.S. are being hurt – many jobs being lost!,” Trump said in his Twitter post
In June, Trump attacked Amazon in a tweet, accusing it of “not paying internet taxes.” Amazon has said it collects state sales taxes in 45 U.S. states that have such a levy.
IBD’S TAKE: Despite the Twitter attacks from Trump, Amazon has been a big winner, with the stock up 58% this year. Amazon is an IBD Leaderboard stock with a healthy IBD Composite Rating of 78 out of a possible 99.
Trump’s attack on Amazon was one of several tweets by the U.S. president Friday morning, from his Mar-a-Lago resort in Florida. In addition to attacking Democrats and “fake news,” Trump rendered his view on global warming.
“In the East, it could be the COLDEST New Year’s Eve on record. Perhaps we could use a little bit of that good old Global Warming that our Country, but not other countries, was going to pay TRILLIONS OF DOLLARS to protect against. Bundle up!” said the Trump tweet.
Amazon shares were down 0.6%, near 1,179, during morning trading on the stock market today. FedEx was up o.7%, near 250. UPS was up 0.8%, near 120.
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