Trump administration releases Postal Service review after Amazon attacks

The Treasury Department today released
a 70-plus-page report
on the Postal Service’s finances,
part of a task force review ordered by the Trump administration
after the president publicly bashed mail deals between the
service and Amazon.

The review, a detailed examination of the service’s
“unsustainable” business model, credited e-commerce platforms
with contributing to an increase in package volume and revenue,
but said future increases in package delivery won’t be enough
to offset financial problems. Without financial changes, “the
USPS’s long-term sustainability is in question.”

The report details issues well beyond package pricing deals,
which the president has used as an argument against Amazon. The
task force review did, however, say “packages have not been
priced with profitability in mind,” and recommend changing
prices on package deliveries “to generate income rather than
maximize volume.”

The report strikes a tone that’s at odds with the rhetoric from
the White House earlier this year. Amazon, and its particular
dealings with the Postal Service, are not mentioned in the
report, but the decision to review the Postal Service’s
finances followed heated comments from President Trump about
the company. In
a March tweet
, Trump said Amazon had been able to “use our
Postal System as their Delivery Boy,” and criticized the
company’s tax practices. The tweet followed
an Axios report
that said Trump was “obsessed”
with the company.

The report suggests the Postal Service’s financial woes are
much more complex than any one deal. Still, Trump has already

reportedly considered increasing postal service rates
on
Amazon, and what action the administration will take based on
the report is not yet clear.

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