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Trump Orders Review of Postal Service After Amazon Criticism

President Donald Trump ordered a review of the U.S. Postal Service on Thursday evening. The review calls for the creation of a task force to study the post office’s pricing, policies and workforce costs. It comes after Trump’s repeated attacks on the post office’s relationship with Amazon, which the president has claimed (without evidence) is bad for the post office. Trump has in the past suggested that Amazon should pay the post office more money.  

Analysts have had mixed opinions on how it would affect Amazon if the postal service were to ask for higher rates. Credit Suisse analysts said in a report released Friday that if there’s a 15-20% increase in Amazon’s shipping costs, the company may raise Prime rates by $20. Analysts at Morgan Stanley said earlier this month that any significant rate hikes could push Amazon to invest even more aggressively in building out its own delivery network. The outcome of all this will become clearer within 120 days, the deadline within which the task force must submit a report on its findings to the president.

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