Economy

Trump goes after Amazon again in morning Twitter attack

Trump goes after Amazon again in morning Twitter attack

Trump took to Twitter on Thursday to say that Amazon pays little or no taxes and hurts the country by putting thousands of retailers out of business.

Amazon.com, Inc. (NASDAQ:AMZN) stock settled in for a second consecutive day of declines on Thursday following President Trump's latest tweet about the online retailer.

Last year, he claimed that Amazon is causing "great damage to tax paying retailers" and that "many jobs" will be impacted in "towns, cities and states throughout the US".

Amazon shares fell nearly 5% yesterday, wiping more than $30 billion off its market value, after news Web site Axios reported that U.S. president Donald Trump is obsessed with the world's largest online retailer and wants to rein in its growing power.

President Donald Trump is "obsessed" with Amazon and wants to go after the company with tax regulations and competition laws, according to reports Wednesday.

And it's not just centered on retail: Trump has also targeted Bezos' ownership of The Washington Post, one of several news outlets he has accused of being unfair to the current White House administration. Bezos owns the Washington Post, which won a Pulitzer Prize past year for its investigation of Trump's donations to charities.

The e-commerce retailer has been dominating the millennial market, yet Generation Z shoppers are still opting to shop at physical stores over shopping online. The bank account would have been Amazon-branded but the report mentioned that it wouldn't involve Amazon turning into a bank on its own.

Lou Kerner, a technology investor who blogs about the sector, said Trump's attack on Amazon "is a very populist thing to do", but that any new measures imposed on Amazon may do little for consumers or small businesses.

Recent reports have suggested Amazon's packages are keeping the U.S. Post Office in operation. Unlike the bitterly partisan fights over media coverage, though, Trump's tweet appeared to strike a chord with people on either side of the aisle given the state of retail lately.

Inc. has lost its hold as the third-most valuable USA company by market capitalization, as the recent selloff in the e-commerce giant's stock has knocked it below Microsoft.

But after touring Amazon's newest fulfilment centre this morning in Monee, Ill., US Rep. Robin Kelly, (D) IL, said she believes Trump's tweets are personal.

Amazon shares fell 4.38 percent on Wednesday after the news. "While Amazon takes advantage of tax breaks and loopholes, it pays federal corporate tax and charges sales taxes in 46 USA jurisdictions".

Items purchased through Amazon are mostly sent through the public postal system, and while we imagine Amazon would have negotiated favourable rates, the sheer volume would surely kick economy of scale into action.

Along with UPS and FedEx, the Postal Service helps deliver packages in the "last mile" of their Amazon journey. After the Axios report was published, the value of Amazon shares plummeted.