Trump convenes task force to study finances of the USA post office

Credit Twitter

Credit Twitter

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. Twitter shows the timeline of Trump's attack on Amazon.

Amazon's founder, Jeff Bezos, also owns The Washington Post, which has aggressively covered the Trump administration.

President Trump has long taken issue with the U.S. Postal Service, but now he's doing something about it.

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President Donald Trump ordered the creation of a task force to review business practices at the United States Postal Service, a move that could affect one of the president's favorite corporate targets: Inc.

In a series of Twitter messages, Trump has accused Amazon of draining the Postal Service of money it can not afford to lose. And in recent tweets and other public statements, Trump has reiterated his belief that Amazon's agreements with the postal service over delivery rates is a "scam" and that the online retailer is to blame for the postal service's financial situation. But package delivery is actually a rare growth area for the service. Amazon and the Postal Service signed a five-year deal in 2013 to deliver packages on Sundays, and both entities have declared the arrangement a success.

Prime membership could get more expensive if Amazon is forced to pay the US Postal Service more to deliver packages. Of late, however, the Postal Service has seemingly been caught in the crossfire of his single-minded attack on Amazon. It also notes that USPS is on the hook for costly pension liabilities and retiree healthcare obligations that can't be funded by the service's current revenue. Another potential opportunity for hurting Amazon: giving a multi-billion-dollar Defense Department cloud-computing contract to a competitor, as some of the president's advisers have encouraged him to do. Amazon has disputed those estimates. "Although we continue to win customers and grow our package business, these gains are not sufficient to offset continuing declines in our mail business, which is our main source of revenue and contribution", Postmaster General and CEO Megan Brennan said in February. Will this task force manage to dig up the nonexistent findings that the president desires, or will it go the way of Trump's Election Integrity Commission (that he established to prove voter fraud in the election he won) and eventually be dissolved like a sad balloon? However, experts have countered that the while the service does lose money delivering first class mail, e-commerce package deliveries are profitable. During its most recent fiscal year, which ended in September, the USPS reported total annual revenue of $69.7 billion, which was less than the $71.4 billion recorded in fiscal year 2016.

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