Amazon’s share price took a deep dive on Tuesday after President Donald Trump accused U.S. Postal Service management of turning a blind eye to predatory shipping practices that have boosted the company at the expense of the American taxpayer. 

The company’s stock price dropped by 12 percent in the half hour after Trump’s latest attack on the e-commerce company founded by Jeff Bezos before making a recovery.

‘I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy,’ Trump insisted. ‘Amazon should pay these costs (plus) and not have them bourne by the American Taxpayer. Many billions of dollars. P.O. leaders don’t have a clue (or do they?)!’ 

Amazon's share price took a deep dive on Tuesday after President Donald Trump accused U.S. Postal Service management of turning a blind eye to predatory shipping practices that have boosted the company at the expense of the American taxpayer

Amazon's share price took a deep dive on Tuesday after President Donald Trump accused U.S. Postal Service management of turning a blind eye to predatory shipping practices that have boosted the company at the expense of the American taxpayer

Amazon’s share price took a deep dive on Tuesday after President Donald Trump accused U.S. Postal Service management of turning a blind eye to predatory shipping practices that have boosted the company at the expense of the American taxpayer

The company's stock price dropped by 12 percent in the half hour after Trump's latest attack (above) on the e-commerce company founded by Jeff Bezos before making a recovery

The company's stock price dropped by 12 percent in the half hour after Trump's latest attack (above) on the e-commerce company founded by Jeff Bezos before making a recovery

The company’s stock price dropped by 12 percent in the half hour after Trump’s latest attack (above) on the e-commerce company founded by Jeff Bezos before making a recovery

Trump claimed Monday in a tweet that the U.S. Postal Service is losing ‘A FORTUNE’ in shipping costs because its doing deliveries for Amazon’s customers who are evading their fair share of taxes by shopping on the Internet. 

‘Only fools, or worse, are saying that our money losing Post Office makes money with Amazon. THEY LOSE A FORTUNE, and this will be changed,’ Trump tweeted. ‘Also, our fully tax paying retailers are closing stores all over the country…not a level playing field!’ 

The tweet suggested that he plans to order a review of Amazon’s contact with the Postal Service, contributing to the company’s downward trend in stock value.

Amazon’s stock price was down nearly five percent on Monday with a total loss of $31 billion in value since Trump started targeting the company in tweets.

Trump took aim at Jeff Bezos' (pictured) Amazon on Saturday morning over Twitter saying the company is costing the US Post Office money

Trump took aim at Jeff Bezos' (pictured) Amazon on Saturday morning over Twitter saying the company is costing the US Post Office money

President Donald Trump had also slapped around Amazon on Monday morning, going after defenders of the Jeff Bezos-owned company’s deal with the U.S. Postal Service as ‘fools, or worse’

The tweet suggested that heEFny's stock price down 4.78 percent since opening bell

The tweet suggested that heEFny's stock price down 4.78 percent since opening bell

The tweet suggested that he plans to order a review of Amazon’s contact with the Postal Service

Amazon's chief Jeff Bezos (LEFT), Larry Page of Alphabet,  Facebook COO Sheryl Sandberg , Vice President elect Mike Pence and President-elect Donald Trump attend a meeting at Trump Tower on December 14, 2016 in New York

Amazon's chief Jeff Bezos (LEFT), Larry Page of Alphabet,  Facebook COO Sheryl Sandberg , Vice President elect Mike Pence and President-elect Donald Trump attend a meeting at Trump Tower on December 14, 2016 in New York

Amazon’s chief Jeff Bezos (LEFT), Larry Page of Alphabet, Facebook COO Sheryl Sandberg , Vice President elect Mike Pence and President-elect Donald Trump attend a meeting at Trump Tower on December 14, 2016 in New York

Amazon's stock price was down nearly five percent  on Monday with a total loss of $31 billion in value since Trump started targeting the company in tweets on March 29

Amazon's stock price was down nearly five percent  on Monday with a total loss of $31 billion in value since Trump started targeting the company in tweets on March 29

Amazon’s stock price was down nearly five percent  on Monday with a total loss of $31 billion in value since Trump started targeting the company in tweets on March 29

The president also hit out at Amazon over the weekend, calling its business deal with the U.S. Postal Service to deliver packages a money-losing agreement that hurts U.S. taxpayers.

In tweets Saturday, Trump claimed ‘the U.S. Post Office will lose $1.50 on average for each package it delivers for Amazon. That amounts to Billions of Dollars.’

He added: ‘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!’ 

Amazon has been a consistent recipient of Trump’s ire. He’s fought a two-pronged battle with its founder Jeff Bezos, who also owns The Washington Post, labeling his news publication ‘fake news’ over its unfavorable coverage at times of his campaign and presidency.

Last week, Trump took similar aim at Amazon over Twitter after a news website revealed his obsession with the extremely successful e-commerce site.

The Axios report on Wednesday that revealed Trump’s plot to put strict new regulations on the company is what initially sent Amazon’s stock into free fall, whacking off billions in value for shareholders, including Bezos. 

Trump did not deny the report and even suggested it was true when he copped to a years-long belief that Amazon is behind retail store failures and U.S. Postal Service problems.

‘I have stated my concerns with Amazon long before the Election,’ Trump said last week. ‘Unlike others, they pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!’

Amazon lives and dies by shipping, and an increase in the rates it pays could certainly do some damage to its profits. Amazon sends packages via the post office, FedEx, UPS and other services.

President Trump has been slapping around Amazon for days. Here's a tweet he sent about it on Saturday

President Trump has been slapping around Amazon for days. Here's a tweet he sent about it on Saturday

President Trump has been slapping around Amazon for days. Here’s a tweet he sent about it on Saturday

Trump believes that Amazon's deal with the U.S. Postal Service to ship packages is unfair even thought its been deemed profitable for the government agency 

Trump believes that Amazon's deal with the U.S. Postal Service to ship packages is unfair even thought its been deemed profitable for the government agency 

Trump believes that Amazon’s deal with the U.S. Postal Service to ship packages is unfair even thought its been deemed profitable for the government agency 

While the U.S. Post Office has lost money for 11 years, package delivery is not the reason.

Boosted by e-commerce, the U.S. Postal Service has enjoyed double-digit increases in revenue from delivering packages. That hasn’t been enough to offset pension and health care costs, as well as declines in first-class letters and marketing mail. 

Together, letters and marketing mail make up more than two-thirds of postal revenue.

In arguing that the Postal Service is losing money on delivering packages for Amazon, Trump appears to be relying on Wall Street analyses that argue the U.S. Postal Service’s formula for calculating its costs is outdated. 

A 2017 analysis by Citigroup did conclude that the U.S. Postal Service was charging below market rates as a whole on parcels. Still, federal regulators have reviewed the Amazon contract with the U.S. Postal Service each year and determined it to be profitable.

An independent agency, the post office does not use taxpayer money for its operations.

The post office does not break down what is driving its growth, but online ordering from retailers, particularly Amazon.com, has revolutionized the way goods are bought and delivered. 

Meanwhile, the U.S. Postal Service reached new highs this year in holiday package delivery, with more than 850 million U.S. parcels delivered from Thanksgiving to New Year’s Eve, according to figures compiled by industry tracker ShipMatrix Inc.

Amazon has taken some steps toward becoming more self-reliant in shipping. Last year, it announced it would build a worldwide air cargo hub in Kentucky, about 13 miles southwest of Cincinnati. 

President Donald Trump hit out at Amazon on Thursday morning before normal trading hours, finally commenting on a report that he's 'obsessed' with the company owned by billionaire Jeff Bezos and wants to 'go after' it

President Donald Trump hit out at Amazon on Thursday morning before normal trading hours, finally commenting on a report that he's 'obsessed' with the company owned by billionaire Jeff Bezos and wants to 'go after' it

President Donald Trump hit out at Amazon on Thursday morning before normal trading hours, finally commenting on a report that he’s ‘obsessed’ with the company owned by billionaire Jeff Bezos and wants to ‘go after’ it

Wednesday report said Trump is looking for ways to knock Internet retail giant Amazon down a few pegs. Amazon's billionaire owner Jeff Bezos is seen at right at the White House in June

Wednesday report said Trump is looking for ways to knock Internet retail giant Amazon down a few pegs. Amazon's billionaire owner Jeff Bezos is seen at right at the White House in June

Wednesday report said Trump is looking for ways to knock Internet retail giant Amazon down a few pegs. Amazon’s billionaire owner Jeff Bezos is seen at right at the White House in June

Amazon closed 4.38 percentage points down on Wednesday after Axios ran its initial report on the president's obsession with Amazon

Amazon closed 4.38 percentage points down on Wednesday after Axios ran its initial report on the president's obsession with Amazon

Amazon closed 4.38 percentage points down on Wednesday after Axios ran its initial report on the president’s obsession with Amazon

The White House said, at a Thursday afternoon news conference that helped to fuel a moderate recovery in Amazon’s stock price, that there’s ‘no specific policies or actions’ that would apply to Amazon’s business model that it’s currently considering.

But Press Secretary Sarah Sanders also noted that Trump is ‘always looking to create a level playing field for all businesses’ and his interest in pursuing an Internet sales tax ‘is no different.’ 

At its low point, on the day of the Axios report, Amazon took a $53 billion thrashing. At day’s end, losses had been reigned in to $31 billion, which is where they remained on Monday.

Axios drove the market down Wednesday am with a report based on the word of five sources that indicated Trump is pondering ways to knock Amazon down a few pegs.

‘He’s obsessed with Amazon,’ a source said told the news website. ‘Obsessed.’

A source told Axios then that Trump has also blamed Amazon for losses suffered by the U.S. Post Office.

‘The whole post office thing, that’s very much a perception he has,’ the source said. ‘It’s been explained to him in multiple meetings that his perception is inaccurate and that the post office actually makes a ton of money from Amazon.’ 

Trump’s desire to further regulate Amazon has been inflamed by his wealthy friends’ complaints that lax Internet commerce rules are killing their businesses, Axios reported.

The president also believes that Amazon’s thriving business model is hurting mom and pop stores that are owned by people who voted for him.  

Friendship didn't last:  Trump shook hands with Jeff Bezos at the White House in June last year - but has become increasingly hostile to Amazon

Friendship didn't last:  Trump shook hands with Jeff Bezos at the White House in June last year - but has become increasingly hostile to Amazon

Friendship didn’t last:  Trump shook hands with Jeff Bezos at the White House in June last year – but has become increasingly hostile to Amazon

If you want a friend in Washington...: Bezos took a robotic dog for a walk around a secretive conference in California earlier this month 

If you want a friend in Washington...: Bezos took a robotic dog for a walk around a secretive conference in California earlier this month 

If you want a friend in Washington…: Bezos took a robotic dog for a walk around a secretive conference in California earlier this month 

Bezos founded Amazon nearly 25 years ago in 1994. For the past 11 years, the U.S. Postal Service has had giant losses, and it’s expected to suffer more.

The government division ended the 2017 fiscal year $2.7 billion down.

Postmaster General Megan J. Brennan said in a cry for help that the service’s ‘financial results will continue to deteriorate and likely at an accelerated rate’ because it ‘cannot generate enough revenue or cut enough costs’ to pay its bills.

A PBS Newshour report at the end of the last fiscal year detailed the post office’s attempt to raise revenue by introducing a double-digit increase in the cost to ship packages. 

A drop-off in traditional letter mail is where the Post Office took its licks, the report said, as mail volume fell by 5 billion pieces, which amounts to 3.6 percent.

Letter mail had made up 70 percent of the U.S Postal Service’s revenue. If anything, the report indicated, its the advent of email that’s killing the government service.

As Brennan said at the time, ‘No other shipper delivers as many e-commerce packages to the home.’

Speaking out on the matter Thursday am, Trump claimed that Amazon was causing ‘tremendous loss to the U.S.’ postal system. He also claimed the company that is the eighth largest employer in the U.S. is ‘putting many thousands of retailers out of business.’

Trump mentioned the fact that Amazon pays ‘little or no taxes to state & local governments’ in his tweet, hinting at a desire for Congress to hit the company and other online retailers with an Internet sales tax.

A source told Axios that Trump is also seeking to come after Amazon using anti-trust or competition law.

Treasury Secretary Steve Mnuchin told the House of Representatives’ tax-writing committee in February that the administration ‘feels strongly’ that Internet sales should be taxed.

At a July appearance before the U.S. Senate where he was asked about the Internet sales tax, Mnuchin singled out Amazon.

‘I am encouraged that Amazon is now charging tax, I believe, on their own sales but not the marketplace,’ he said. ‘I’m not sure I understand the consistency on that, but I respect the states’ ability that there’s an awful lot of money that’s not being collected.’

Traditionally conservative organizations like Americans for Tax Reform that are typically on the Republican president side have staunchly opposed the administration’s push to introduce new taxes on e-commerce. 

ATR president Grover Norquist told DailyMail.com on Thursday after the Trump tweet that his organization is ‘100 percent opposed’ to an Internet sales tax because it ‘would allow politicians to impose taxes and regulations across state borders.’

‘An online sales tax hurts small businesses and consumers, not Amazon, because Amazon already collects sales tax nearly everywhere,’ Norquist said. ‘An online sales tax would entrench big box stores and stop Mom and Pop competitors dead in their tracks.’

Norquist further posited that an online sales tax would actually help Amazon — ‘because then they can sell tax collection services.’

Trump's desire to further regulate Amazon has been inflamed by his wealthy friends' complaints that lax Internet commerce rules are killing their businesses, Axios reported.

Trump's desire to further regulate Amazon has been inflamed by his wealthy friends' complaints that lax Internet commerce rules are killing their businesses, Axios reported.

Trump’s desire to further regulate Amazon has been inflamed by his wealthy friends’ complaints that lax Internet commerce rules are killing their businesses, Axios reported.

Bezos is also the owner of The Washington Post, which Trump has labeled 'fake news' because of the stories it has done on him that he says are false representations

Bezos is also the owner of The Washington Post, which Trump has labeled 'fake news' because of the stories it has done on him that he says are false representations

Bezos is also the owner of The Washington Post, which Trump has labeled ‘fake news’ because of the stories it has done on him that he says are false representations

Bezos is also the owner of The Washington Post, which Trump has labeled ‘fake news’ because of the stories it has done on him that he says are false representations.

A June 28, 2017 tweet dubbed the two companies – which have totally separate leadership structures  – the ‘AmazonWashingtonPost’ and described the newspaper as the ‘guardian’ of the retail division and the reason that Amazon does not have to pay an Internet sales tax. 

‘Which they should,’ he stated.

An August 16, 2017 tweet claimed ‘Amazon is doing great damage to tax paying retailers.

‘Towns, cities and states throughout the U.S. are being hurt – many jobs being lost!’ he said.

Throughout his presidential campaign, Trump made similar assaults on The Post, Amazon and Bezos, who attended a meeting last June for the tech industry at the White House.

White House Deputy Press Secretary Rah Shah insisted Thursday morning on Fox News that the tweets and the president’s desire to tax Amazon are nothing personal.

‘This is really about policy,’ he said. ‘You have a huge company that’s done amazing things…and really tax policy and other policy has to catch up with that.’





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