Trump orders Postal Service review after blasting Amazon deal

Post Office mailman with a friendly dog

Post Office mailman with a friendly dog

President Donald Trump wants a review of the U.S. Postal Service's business practices.

"It shall be the policy of my administration that the United States postal system operate under a sustainable business model to provide necessary mail services to citizens and businesses, and to compete fairly in commercial markets", Trump wrote in the executive order.

The president has also criticized Amazon for not paying its share of taxes and for hurting more traditional bricks-and-mortar retailers that have been hurt as a greater share of their business goes online. In a series of Twitter messages in recent days, Donald Trump accused Amazon, the giant e-retailer, of draining the postal service of money it can't afford to lose.

According to the executive order, a task force comprise of top officials, including Treasury Secretary Steven Mnuchin, who would chair the group, will lead the investigation into the USPS' finances and will be required to issue recommendations and a final report no later than early August. In fact, the USPS has indicated that the addition of package delivery services has been one of the few bright spots in its otherwise bleak financial performance, generating double-digit revenue increases. It's likely that Amazon would then accelerate and prioritize its own delivery services like Seller Flex and Prime Now that do not rely on the USPS.

Information on rsquo Amazon &obligations to USPS usually are perhaps not known. In this announcement, Trump said the postal service is "on an unsustainable financial path and must be restructured to prevent a taxpayer-funded bailout". "Singling out favorite Trump villains like Amazon is a distraction from our bipartisan effort". Package volumes grew by 11.4 percent last year, according to USPS and documents show that package revenue contributed a net total of more than $7.1 billion to the agency's bottom line during fiscal year 2017.

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Even the Postal services, that is assumed to be self-sustaining, must consult Congress for permission to raise prices and have to decades values of retiree health benefits.

The Postal Accountability and Enhancement Act in 2006 made it illegal for the Postal Service to ship parcels at below cost.

"By law our competitive package products, including those that we deliver for Amazon, must cover their costs".

Amazon also has a special agreement with the Postal Service to deliver packages on Sundays.

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