President Donald Trump took to Twitter on Friday to target Amazon, calling for the United States Postal Service to charge the retail company “much more” for shipping its packages.
What did the president say?
In a tweet, Trump accused Amazon of making the government agency “dumber and poorer.”
“Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer? Should be charging MUCH MORE!” the president wrote.
Jeff Bezos, the founder of Amazon and its chief executive officer, also owns the Washington Post, a newspaper the president has frequently criticized, even dubbing it the “Amazon Washington Post” and accusing it of fabricating stories about him.
According to Reuters, the U.S. Postal Service is an independent agency operating within the federal government. It does not receive taxpayer dollars for its operating expenses. The agency lost $2.74 billion this year, according to its annual report. CBS reported that the agency’s financial woes stem from pension and health care costs.
Does USPS profit from its contract with Amazon?
Yes. A spokesperson for Amazon told Fortune earlier this year that its partnership with the USPS is “reviewed annually by the Postal Regulatory Commission,” which has “consistently found that Amazon’s contracts with the USPS are profitable.”
Reuters also noted that Amazon is considering launching its own delivery service. In 2015, the online retail company reportedly spent $11.5 billion on shipping expenses, a sum that comprised 46 percent of all of its operating expenses that year.
Amazon announced this week that it had a record-setting holiday sales season, Politico noted, “though it is unclear whether that is what prompted the president’s critique.”
In addition to the U.S. Postal Service, UPS and FedEx are also carrier partners of Amazon.
Amazon did not immediately comment on the president's tweet.