President Trump attacked the US Postal Service, calling it “a joke” during Friday’s Oval Office bill signing ceremony.
Trump said that the postal service needs to raise the price of a package, “approximately four times” because they are currently losing money delivering packages for Amazon “and other internet companies.”
“The Postal Service is a joke, because they are handing out packages for Amazon and other internet companies, and every time they bring a package, they lose money on it,” Trump said.
Trump said that the Postal Service is “very cozy with some of these companies” which is why, according to Trump, they wont raise the price on packages.
“But they don't want to raise, because they don't want to insult Amazon and they don't want to insult other companies, perhaps, that they like. The post office should raise the price of the packages to the companies, not to the people, to the companies and if they did that, it would be a whole different story,” Trump said.
Some background: The Postal Service is a government agency, but it operates as an independent business without direct taxpayer support. It has lost $65 billion over the last 11 fiscal years.
Amazon has a confidential agreement with the Postal Service where it delivers large numbers of packages directly to the post office nearest to where they need to be delivered. The Postal Service then delivers the packages the "last mile" to their destinations. The Postal Service says the law requires that such negotiated contracts cover its costs, and that regulators have studied the Amazon contract and approved it.
Treasury Secretary Steve Mnuchin said that there was a $10 million loan provided to the USPS in the CARES Act, but “certain criteria for postal reform” would be included as part of that loan.
Trump added that if the USPS doesn’t raise the price on packages, he won’t sign anything for more funding for the postal service.