WASHINGTON – US President-elect Donald Trump has reportedly expressed strong interest in privatizing the United States Postal Service (USPS), according to a Washington Post report on Dec 14. The report cites three sources familiar with the matter.
The USPS, which has accumulated over US$100 billion (S$135 billion) in losses since 2007, reported a net loss of US$9.5 billion for the fiscal year ending Sept 30. This marks a US$3 billion increase from 2023, largely attributed to a rise in non-cash workers’ compensation expenses.
When briefed on the USPS’s financial struggles, Trump reportedly stated that the federal government should not subsidize the agency. He has since discussed privatization with key advisors, including Howard Lutnick, his nominee for commerce secretary, during meetings at Mar-a-Lago.
The report also notes that members of the Department of Government Efficiency—a new office led by billionaire Elon Musk and entrepreneur Vivek Ramaswamy—have held preliminary talks about significant reforms to USPS operations.
A USPS spokesperson highlighted cost-cutting measures implemented over the past three years, including a reduction of 45 million work hours and a US$2 billion decrease in transportation expenses. The agency is seeking regulatory approval to modernize its infrastructure, a move expected to save an additional US$3.6 to US$3.7 billion annually.
Karoline Leavitt, a spokesperson for Trump’s transition team, emphasized that no policy should be considered official unless directly confirmed by Trump or his representatives.
However, potential privatization has sparked concerns about its broader impact. Critics warn it could disrupt the e-commerce sector, especially companies like Amazon, which rely on USPS for last-mile deliveries. It could also pose challenges for rural and small businesses, which depend on the USPS’s unique ability to deliver to remote areas.
Complicating the situation, sources say Trump’s team is reviewing USPS contracts for electrifying its delivery fleet, potentially unwinding multibillion-dollar agreements with Oshkosh and Ford. These contracts include thousands of battery-powered delivery trucks and charging stations.
The USPS has long faced political and financial challenges. In 2020, Congress authorized a US$10 billion loan to the USPS as part of a US$2.3 trillion Covid-19 relief package, a measure Trump initially threatened to block.
Amazon, which has also faced tensions with Trump, announced a US$1 million donation to his inauguration fund and plans to air his inauguration on Prime Video.