Home Business Trump won't approve Postal Service loan without Amazon provision

Trump won’t approve Postal Service loan without Amazon provision

President Trump said Friday that he won’t authorize a $10- billion loan for the U.S. Postal Service unless the company raises charges for Amazon and other huge carriers to four to five times current rates.

” The Postal Service is a joke since they’re giving out plans for Amazon and other internet companies and whenever they bring a plan, they lose money on it,” Trump informed press reporters in the Oval Office.

The president was reacting to a concern about reports his administration plans to require significant modifications in postal operations as the rate for approving a $10- billion loan that was included in the federal government’s $2-trillion financial rescue plan.

Under the rescue plan legislation, Treasury Secretary Steven T. Mnuchin must authorize the loan before the Postal Service can get the cash. Officials at the Postal Service had no immediate reaction to Trump’s remarks.

Trump said the modifications the administration will insist on will make it a “entire brand-new ballgame” at the Postal Service. He said the firm did not want to make the modifications due to the fact that it did not want to offend Amazon and other business.

Looking at Mnuchin, who was with him in the Oval Office, the president stated, “If they don’t raise the price of the service they offer … I’m not signing anything and I’m not authorizing you to do anything.”

Mnuchin told press reporters that he had Treasury officials dealing with the Postal Service on the terms of the loan if postal authorities decide they need more cash.

He stated the Postal Service board is already performing a search for a new postmaster general to run the agency and endeavor operational modifications.

The Washington Post, which initially to report about the administration’s push for modifications at the Postal Service, priced quote unnamed officials as stating that senior Postal Service officials have actually been informed the administration wants to utilize the $10- billion loan as take advantage of to influence how much the agency charges for providing packages and how it manages its financial resources.

Trump has grumbled for years that the Postal Service was being made use of by Amazon and other shippers and that was the factor the company was losing so much cash.

Home Speaker Nancy Pelosi, inquired about the administration’s efforts Friday, said the Postal Service enjoyed wide assistance with the American people which the administration is threatening to damage a vital part of the economy.

” This is really dangerous and Mnuchin at Treasury is trying to leverage the debt circumstance in a way that need to be stopped,” Pelosi told press reporters.

Amazon was founded by Jeff Bezos, who owns the Washington Post. Trump has actually often labeled the Post “phony news” after the newspaper has actually reported undesirable developments during his project and presidency, and highlighted the Bezos connection by calling it the “Amazon Washington Post.”

Trump, nevertheless, tweeted Friday that he will not let the Postal Service fail.

” It has actually been mishandled for several years, especially since the development of the web and modern-day technology,” Trump stated in a tweet. “Individuals that work there are fantastic, and we’re going to keep them happy, healthy, and well!”

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