In a striking revelation, Amazon struck a highly favourable agreement with the US Postal Service (USPS) during Donald Trump's presidency, securing significant cost reductions on package deliveries. The deal, which has now come under scrutiny, allowed the e-commerce giant to save billions in operational expenses.
A Lucrative Partnership
Documents obtained by The Independent confirm that Amazon benefited from a revised pricing structure under the Trump administration, drastically lowering shipping costs. The arrangement, negotiated in 2017, reportedly saved the company an estimated $1.6 billion annually.
Controversial Terms
Critics argue that the agreement disproportionately favoured Amazon, raising concerns over fairness in government contracts. While USPS defended the deal as mutually beneficial, opponents claim it placed undue strain on the postal service, which has faced financial struggles for years.
Political Backdrop
The negotiations took place despite then-President Trump's frequent public criticisms of Amazon and its founder, Jeff Bezos. Analysts suggest the deal highlights the complex relationship between big tech and federal regulators.
Market Impact
With Amazon's logistics network expanding rapidly, the savings from this agreement helped solidify its dominance in e-commerce. Competitors have since called for greater transparency in USPS pricing models to ensure a level playing field.
As debates over corporate influence in government continue, this case serves as a prime example of how policy decisions can reshape entire industries.
