Please ensure Javascript is enabled for purposes of website accessibility

Trump Renews Attack on Amazon, Accusing It of Contributing to Post Office Losses

By Eric Volkman – Aug 17, 2020 at 11:03PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The president revives an old grievance against the company and CEO Jeff Bezos.

Not for the first time, Amazon (AMZN -0.77%) and its boss have come under fire from President Donald Trump. On Monday, Trump blamed the company for the U.S. Postal Service's financial struggles.

"Amazon and other companies like it, they come and they drop all of their mail into a post office," the president said during an interview on Fox & Friends. "They drop packages into the post office by the thousands and then they say, 'Here, you deliver them.' We lose $3 and $4 a package on average. We lose massive amounts of money."

Mail being delivered to a mailbox.

Image source: Getty Images.

Blaming the massive retailer for the woes of the Postal Service is a long-standing theme for Trump that he has revived amid the independent agency's current difficulties. Budgetary issues have recently resulted in measures such as the removal of sorting machines and the closure of mailboxes.

Few experts and analysts believe Amazon is at the heart of the Postal Service's fiscal difficulties. Many point to the requirement, mandated by a law passed by Congress in 2006, that the organization pre-fund health benefits for its employees. This funding tops $5 billion annually.

As for the government's latest measures, critics say that Trump is making a concentrated effort to restrict voting by mail in hopes of tilting the November election in his favor. House Speaker Nancy Pelosi has called that legislative body back into session in order to look into the matter.

Bezos has not responded to Trump's Monday remarks. Amazon refused to comment on them. 

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Amazon Stock Quote
$93.41 (-0.77%) $0.72

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.