Trump Says U.S. Postal Service Should Charge Amazon More
December 29 2017 - 9:35AM
Dow Jones News
By Cara Lombardo
President Donald Trump said Friday that the U.S. Postal Service
should charge Amazon.com Inc. (AMZN) and other companies more to
deliver their packages.
"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?," he tweeted Friday morning. "Should be
charging MUCH MORE!"
The quasigovernmental agency's financial situation has
deteriorated in recent years as mail volume has dropped. The USPS
posted a $5.6 billion loss in its 2016 fiscal year, driven by
retiree health benefit expenses of more than $5 billion.
Earlier this month, the federal agency that oversees the USPS
gave the service permission to speed up its pricing increases over
the next five years. The plan would allow the postal service to
raise rates on "market-dominant" products, which includes
first-class mail, by up to two percentage points above inflation
each of those years.
The Coalition for a 21st Century Postal Service, a group
representing corporate mail customers such as Amazon and Bank of
America Corp. (BAC), said at the time that it was disappointed with
the decision.
Postmaster General Megan Brennan has said she'd prefer to
eliminates price caps altogether.
Neither the USPS nor Amazon immediately responded to requests
for comment.
Write to Cara Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
December 29, 2017 09:20 ET (14:20 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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