Publicado: Sáb, Abril 14, 2018
Financiera | Por Marilu Caballero

Trump Orders Review Of Postal Service's Operations

Trump Orders Review Of Postal Service's Operations

Another White House official disputed any claims that the order was in anyway directed at Amazon.

Trump has openly wondered whether the office, whose agreement with Amazon remains private since it is considered proprietary information, has a "clue" about the situation.

President Trump has been accused that his directives seeking postal reform are really targeting Amazon and its CEO.

The first thing on a list of needed evaluations is the expansion and pricing of the package delivery market.

President Trump says the federal government will be taking a closer look into the U.S. Postal Service's finances.

Trump's executive order does acknowledge that "a number of factors, including the steep decline in First-Class Mail volume" contribute to USPS's financial woes.

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McDougal was paid $150,000 by American Media Inc., the Enquirer's parent company, whose chief executive is a friend of Trump's . But a source said it was Cohen's "standard practice" to play recordings for the president that he'd made of other top advisers.

Amazon founder Jeff Bezos also owns The Washington Post, which has been a frequent Trump target. In the surprise move, Mr. Trump said USPS is on "an unsustainable financial path" and "must be restructured to prevent a taxpayer-funded bailout".

The executive order sets up a task force to review USPS's finances and operations and report back to the president.

The USPS, which is supposed to be an independent, self-sustaining agency, has been financially struggling for years and reportedly has lost $65 billion since the 2008 recession, Reuters reported. Of late, however, the Postal Service has seemingly been caught in the crossfire of his single-minded attack on Amazon. Credit Suisse estimates this could amount to a hit of $1 billion to $1.8 billion to Amazon's bottom line. Package deliveries have been rising year over year, so some suggest Amazon is actually helping USPS stay financially afloat.

The Postal Accountability and Enhancement Act in 2006 made it illegal for the Postal Service to ship parcels at below cost. The elevated numbers are in thanks to companies like Amazon.

On the other hand, Amazon could simply use the likes of UPS and FedEx for its last-mile delivery, according to Michael Pachter, managing director of equity research at Wedbush Securities. Now Trump is ordering up a task force to review the post office's business practices.

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