Trump sets ultimatum for USPS to raise prices before approving $10B emergency loan

[Galraedia]

The Postal Service warns it will run out of cash by the end of the fiscal year, but President Donald Trump on Friday said the agency should raise its package and shipping rates by “approximately four times” before seeking more aid from Congres.

While the president has made this recommendation several times, this most recent instance came with an added wrinkle: Trump said his administration won’t approve a $10 billion loan to USPS guaranteed under the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act unless the agency first agrees to take his advice.

“If they don’t raise the price, I’m not signing anything, so they’ll raise the price so that they become maybe even profitable, but so they lose much less money. And if they don’t do it, I’m not signing anything and I’m not authorizing you to do anything,” Trump said in a White House press conference alongside Treasury Secretary Steven Mnuchin.

Mnuchin said his team at Treasury is “actively working” with USPS officials in providing the $10 billion loan, but acknowledged some caveats.

Read more: https://federalnewsnetwork.com/agency-oversight/2020/04/trump-sets-ultimatum-for-usps-to-raise-prices-before-approving-10b-emergency-loan/

[Cha]

1. I asked the Postal Clerk if they were shutting

down today and he said he didn't know.

I wished him Good Luck and said we were all pulling for them!

[Jake Stern]

2. While I don't agree with his bully style, he actually does have somewhat of a point

Americans have skated by for years with fairly cheap postage. The cost to send a domestic first class letter in Norway costs the equivalent of $1.67.

Raising the postage rate fourfold is way too far but I could see doubling their rates.

[regnaD kciN]

4. If they double their rates, it will be suicide...

People who have to ship packages will just use UPS, FedEx, etc., instead...which is, of course, just what the Trumpublicans want.

[delisen]

6. Norway has a good social safety net We do not.

That is one of many differences between our countries that affects affordability and quality of life.

Millions of us cannot afford basics anymore and. a 4x increase is far too damaging to families.

Any funds needed must be found elsewhere.

[woodsprite]

9. What if Bezos bailed them out? My kids asked that at dinner tonight.

It’d piss Trump off and help the post office was their reasoning. I had said they should agree, then Biden could rescind the stipulation or lower it.

[John Fante]

8. Trump doesn't have a point about anything, EVER.

He wants to bleed us dry to get back at Amazon. That's all this is.

[Girard442]

3. Anyone can go on USPS.GOV, UPS.COM, and FEDEX.COM to compare parcel rates and transit times.

It should be obvious to anyone who isn't actually swigging Clorox from the jug that raising postal rates 4X will drop postal package traffic to zero.

[regnaD kciN]

5. And you don't think that's the intention...?

[thesquanderer]

11. Amazon isn't paying the published rates. Big companies can negotiate with USPS/UPS/Fedex.

Still, USPS isn't losing money on servicing Amazon. And yes, quadrupling their price to Amazon will just send most of that business to UPS, etc.

[John Fante]

7. Trump is trying to raise the price of shipping during a

period of unprecedented economic hardship.

Team Joe must be pinching themselves.

[dawg day]

10. Does he realize voters like forty five cent letters?

This all seems aimed at Bezos, only we will all pay.

[Tom Rinaldo]

12. The U.S. Postal Service is quite popular. Especially in more rural areas.

Pushing for it to raise its prices is definitely not.