President Trump on Wednesday took to social media to blast e-commerce giant Amazon accusing the company of hurting local retailers and causing job losses. This led to a drop in company stock value by as much as $5 billion during pre-market trading.
“Amazon is doing great damage to tax paying retailers,” he tweeted. “Towns, cities and states throughout the U.S. are being hurt – many jobs being lost!”
E-commerce giant, Amazon. Credit: AFP/Leon Neal
The President has previously criticized the e-commerce giant over similar concerns as and pointing out that the company owned by Jeff Bezos also own The Washington Post.
For years, there have been concerns over unfair practice and advantage and practices by online companies like Amazon over traditional brick-and-mortar stores because they don’t have physical presence in states where they have satellite operations. This setup has allowed them to get around collecting taxes.
With Amazon’s expansion over the years, it’s operations have now changed to include data centers, storefronts and distribution centers to enhance its shipping times. Verge.com reported that the company now collects sales tax in 45 states where it has a physical presence.
After the President’s tweet, Amazon shares closed down 0.5%, according to a CNBC report.
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