Published: Wed, April 04, 2018
Worldwide | By Lisa Hogan

Amazon -1% on Trump tweet suggesting post office collusion

Amazon -1% on Trump tweet suggesting post office collusion

In the latest of a series of postings on Twitter, the president reinforced his assessment that Amazon's business is costing taxpayers "many billions of dollars" through subsidised rates at the US Postal Service. 4 times in the last week now. In a column published in January, the Atlantic's David Graham called Donald Trump "the President who doesn't understand his own positions", and argued "if foreign leaders, members of Congress in both parties, and voters can not tell what the USA government's policy is, the government effectively has no policy at all". But are investors going to continue to listen? Bezos's wealth is based largely on the price of Amazon stock, and as shares soared in early 2018 his fortune grew by more than $30 billion. Amazon's stock fell 5 percent following the news.

Corporations may have their own reasons to applaud the Trump Administration's tax bill, but there has been a lot of criticism.

Bezos is the world's richest man, with a net worth estimated over $100 billion since the start of the year. "It's as if Amazon gets a subsidized space on every mail truck".

In the latest in a line of tweets attacking Amazon, Trump seemed to be responding to those who have said that the US Postal Service does indeed make a profit from its work with Amazon.

The Nasdaq has fallen 2% since Trump vs. Amazon became a thing again.

Amazon also ships packages through providers such as FedEx Corp (FDX.N) and United Parcel Service Inc (UPS.N) as well as its own experimental shipping service. "Trump is trying to say that Amazon is the reason the Post Office is losing millions of dollars and, in reality, that's not the case", Logan Purk told Business Insider today.

"It's inappropriate for government officials to use their position to attack an American company", said Neil Bradley, chief policy officer of the U.S. Chamber of Commerce, citing the value of the free enterprise system and the rule of law.

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