After Amazon announced a partnership with a French grocery store, the attention turned shifted back home towards the company. The President of the United States, Donald Trump, criticized Amazon twice in the same week for not paying enough taxes and getting affordable rates via the postal service.
Trump aimed the accusations at Amazon and took to Twitter to post the message publicly. According to Reuters, a news report from Axios explained why Trump is obsessed with the e-commerce company. In addition, the analysis goes on to explain ways Amazon's power should be reduced through antitrust or competition laws.
At the news of Amazon undergoing some regulatory action dropped down the company shared 3.3 percent Wednesday and Thursday of last week. In other words, this knocked off $24 billion market value for the electronics giant.
Trump added via Twitter that the U.S Postal Service loses $1.50 on average for every package it delivers for Amazon. Furthermore, on Saturday the president said this arrangement amounts to Billions of dollars lost.
"If the P.O. 'increased its parcel rates, Amazon's shipping costs would rise by $2.6 Billion,'" Trump tweeted, although it was not clear what report he was citing. "This Post Office scam must stop. Amazon must pay real costs (and taxes) now!"Within the above news release, a study offered a different finding of the costs of the postal service to deliver packages for the e-commerce giant. As stated by the Wall Street Journal, Citigroup analysis from a year before confirming if the U.S Postal Service reallocated costs for the volume of packages it delivers it should charge $1.46. Federal regulators who review contracts made by USPS have not raised any issues or concerns it has with Amazon.
The White House spokeswoman did confirm on Thursday the administration had nothing planned for Amazon on the agenda or any concrete course of action.Trump did not just aim critique at Amazon. His remarks also accused the Washington Post, which has been critical of the Trump administration. The Huffington Post report corroborated that Trump demanded the daily newspaper be listed as a lobbyist for Amazon.
Let's remember that back in 2014, Amazon purchased the Pulitzer-winning newspaper the Washington Post. The daily has won a Pulitzer a year earlier because of its coverage of Trump's donations to charities. Naturally, the president and Amazon's CEO, Jeff Bezos, sit on opposite sides of the table.This saga between the Trump Administration and Amazon is just a start. Finally, it will be interesting to see how this story evolves and what the next chapter has in store.