Trumps Attacks Amazon and Washington Post Again
Online retail giant Amazon has once again become the target of U.S. President Donald Trump'due south Twitter attacks.
The leader has been insisting that the The states Mail service is losing "massive amounts" of coin in its dealings with Amazon. On Tuesday, Trump tweeted that the mail service part may non "have a inkling" nigh how much the company is hurting information technology.
"Amazon should pay these costs (plus) and not accept them bourne (sic) past the American Taxpayer. Many billions of dollars. P.O. leaders don't have a inkling (or do they?)!" he wrote.
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The president has tweeted similar calls for Amazon to pay more taxes in the by. Last week, he chosen the company's deal with the post office a "scam."
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Here's a look at Trump's complicated history with Amazon, and what he could exist hoping to accomplish with his latest round of criticism.
What's really hurting the U.S. Postal Service?
Trump is right that the U.S. Postal Service is losing coin, only that isn't related to Amazon — or packet delivery in general.
The president insists that its reason for losing coin is that Amazon does not pay enough taxes, and that puts the brunt on taxpayers who fund the service.
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On the contrary, the mail has enjoyed double-digit increases in revenue from delivering packages, but that hasn't been plenty to offset declines in first-course messages and marketing postal service, which together make up more two-thirds of postal revenue.
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The service's 11 years of losses are mostly attributed to alimony and health-intendance costs.
Every bit Bloomberg reports, Trump has non offered any evidence nearly why he believes Amazon is to blame for the post office'south woes. The mail function itself has said that e-commerce deliveries help boost its operations.
Jeff Bezos and The Washington Post connectedness
Many have suggested that Trump'southward disapproval of Amazon stems from his dislike of the visitor's billionaire CEO, Jeff Bezos, who also privately owns The Washington Post.
"Information technology's been pretty clear from his tweets, both his recent ones and going dorsum a number of years, that he links Bezos' buying of The Washington Mail service with the fact that he'south too the CEO of Amazon," Sean Mullin, the executive director of the Brookfield Institute, explained to Global News.
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The newspaper has been repeatedly slammed by the president as "false news."
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Last twelvemonth, it won a Pulitzer Prize for its investigation of Trump's donations to charities, which plant that many of Trump's philanthropic claims were exaggerated and often were not charitable donations.
Mullin notes that at that place'south little evidence to advise that Bezos has changed the editorial independence of the paper, or its mandate, since buying it in 2013.
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Nonetheless, White House Deputy Press Secretary Raj Shah has been quick to deny that Trump has a personal grudge confronting Bezos or Amazon.
"A lot of people accept made this, with respect to Amazon, nigh personalities and the CEO at Amazon – we're talking nearly Jeff Bezos here," he said last calendar week on Fox News. "It's really near policy."
What action can Trump accept?
Trump substantially wants the postal service to increase shipping costs for Amazon, but his list of options doesn't end there.
On Mon, Vanity Fair reported that advisers shut to Trump accept likewise encouraged him to cancel Amazon's multi-billion contract with the U.S. defence department to provide cloud calculating services.
As president, Trump could also push attorneys full general in Republican states to open probes into Amazon'due south business practices.
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Could this actually hurt Amazon?
Amazon shares were up about 0.2 per cent in Tuesday morn trading on the Nasdaq afterward trading upward about 1.8 per cent earlier on Tuesday before Trump's latest tweet.
Simply the company'south shares fell more than 5 per cent Monday, following another Trump tweet that promised unspecified changes to Amazon's dealings with the postal service.
Walid Hejazi, an associate professor of international business at the University of Toronto, explained that "at that place's a lot of incertitude" over how Amazon will truly be affected by Trump's twitter rants.
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But Hejazi said he expects things will blow over, and the retail behemothic will not exist injure in the long term.
"I retrieve materially, but it's hard to know for sure, that over the long term information technology'll have no effect. I don't remember Donald Trump will be able to do annihilation legislatively that will undermine the success of Amazon," he said, adding that Trump will probably switch to criticizing something else in the next few days.
The professor added that consumers, who similar the products and services that Amazon offers, are unlikely to turn abroad from the visitor.
— With files from Reuters, The Associated Printing
© 2018 Global News, a division of Corus Entertainment Inc.
Source: https://globalnews.ca/news/4119683/donald-trump-amazon-attacks-washington-post/
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