Trump just told the press pool that the US Postal Service should raise its shipping prices by four times -- and as leverage he threatened to withhold a congressionally-approved emergency coronavirus loan to USPS, confirming
President Trump on Friday said he would not be approving an emergency loan for the U.S. Postal Service if it did not immediately raise its prices for package delivery, confirming a recent Washington Post article that said he planned to exert more control over the agency.
Trump recently signed a law that allowed the cash-strapped U.S. Postal Service to borrow $10 billion from the Treasury Department. The Post has reported that the White House wants to force changes at USPS as part of the terms of the loan. Trump confirmed on Friday that one of those new conditions is a requirement that the Postal Service raise prices.
He said that he won’t allow Treasury Secretary Steven Mnuchin to approve the loan if prices aren’t raised.
Trump and his allies have frequently claimed that higher package rates on Internet shipping companies – Amazon, in particular – could ease the Postal Service’s financial troubles. But higher package rates could hurt the agency by artificially raising its prices above those of United Parcel Service and FedEx, analysts say. Higher prices also could impact Amazon, which acts as both retailer and shipper, by forcing it pass off higher costs on its customers to compete.
The Postal Service repeatedly has defended its arrangement with the e-commerce giant, saying it gets fair rates for the services it provides in a highly competitive environment.
Trump says he will block coronavirus aid for U.S. Postal Service if it doesn’t hike prices immediately
WASHINGTON - President Donald Trump on Friday threatened to block an emergency loan to shore up the U.S. Postal Service unless it dramatically raised shipping prices on online retailers, an unprecedented move to seize control of the agency that analysts...