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Technology

Trump Says Amazon Does 'Great Damage' To Retailers, Shares Fall

"[Amazon is causing] great damage to tax-paying retailers," US President Donald Trump said via a Twitter post Wednesday, causing shares in the online retailer to fall 1.2% in early trading.

“Towns, cities and states throughout the US are being hurt – many jobs being lost!” Trump said in the tweet.

Trump has previously criticised Amazon and The Washington Post, owned by Amazon founder Jeff Bezos, for its coverage. In June, Trump posted a tweet attacking “AmazonWashingtonPost, sometimes referred to as the guardian of Amazon not paying internet taxes".

Tax Disputes

In December 2015, Trump also described The Washington Post as a tax shelter that Bezos uses to keep Amazon’s taxes low. Without these arrangements, Trump argued, Amazon’s stock would “crumble like a paper bag”. Bezos actually owns The Washington Post via a holding company, separate from Amazon.

Amazon did not respond to a request for comment.

Amazon has been battling a number of politicians from both the US and Europe about its stance on tax. In the US, Amazon previously fought to only collect sales taxes for purchases in states where it doesn’t have a physical presence. Now that it has a legion of distribution centres, it collects sales tax in every state that has one.

The US retailer is currently fighting the European Union over its tax bill, while, in March, it won a $1.5 billion tax dispute with the IRS.

News by Bloomberg. Additional reporting by ESM. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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