President Donald Trump is taking his ongoing battle with Amazon up a notch by ordering a review of the United States Postal Service's finances.
Under the executive order, a task force chaired by the US Treasury Secretary will investigate the postal service's business model—including pricing—and offer recommendations on reform.
Although Amazon isn't named in the order, Trump has repeatedly accused the e-commerce giant of owing billions to the US Postal Service. In recent weeks, he's gone as far as to threaten action on Amazon and suggested that USPS should raise its shipping costs.
While we are on the subject, it is reported that the U.S. Post Office will lose $1.50 on average for each package it delivers for Amazon. That amounts to Billions of Dollars. The Failing N.Y. Times reports that "the size of the company's lobbying staff has ballooned," and that... — Donald J. Trump (@realDonaldTrump) March 31, 2018
...does not include the Fake Washington Post, which is used as a "lobbyist" and should so REGISTER. If the P.O. "increased its parcel rates, Amazon's shipping costs would rise by $2.6 Billion." This Post Office scam must stop. Amazon must pay real costs (and taxes) now! — Donald J. Trump (@realDonaldTrump) March 31, 2018
The full details of Amazon's deal with the USPS aren't public; estimates suggest it pays about $2 per package.
The Postal Service is indeed hemorrhaging funds; it's been averaging annual net loses reaching close to $5 billion over the last five years. But one reason is that letter mail volume—the postal service's primary source of revenue—has been declining. Package deliveries have been rising year over year, so some suggest Amazon is actually helping USPS stay financially afloat.
Still, the demand hasn't been enough to offset its growing costs. By law, USPS also has to prefund a hefty pension and healthcare program for its retired employees, which totaled $38 billion at the end of fiscal 2017.
Trump's executive order acknowledges both issues. The task force will also review how the decline in mail volume is affecting the USPS, along with its work force and operations.
Amazon declined to comment on the executive order or Trump's Twitter tirades against the company.