President Donald Trump has announced new tariffs on collections on remote islands despite the fact that the only residents are penguins.
The tariffs are part of a new plan Trump announced Wednesday for what he called “liberation day.” The plan included a universal 10% tariff on all imports from the country and an increase in tariffs for dozens of other people.
The administration expects new rates to be maintained until the US narrows down the $1.2 trillion trade imbalance recorded last year. But the broad list of tariffs threatens many, but not all, to say that economists are equivalent to taxes on American businesses handed over to consumers.
Trump has announced tariffs on the hearing of unmanned volcanoes and the MacDonald’s Islands, a remote area where only penguins, seals and seabirds live.
Citing White House officials, the island was included because it is Australia’s territory, Axios reported. An Island Information Guide on the Australian Government website describes the Heard and MacDonald’s Islands as “one of the wildest and most distant places on the planet.”
The island is only accessible via a two-week boat voyage from Perth on Australia’s west coast, according to the Australian Antarctic Program. And according to the British newspaper The Guardian, they have not visited by humans in nearly a decade.
The White House says the islands are currently leviing 10% “duty on the US” including “currency manipulation and trade barriers.” In retaliation, the US is implementing “discounted mutual tariffs” at the same rate.
The decision prompted a response from Australian Prime Minister Anthony Albanese, saying, “There is no safe place on earth.”
In 2022, the United States imported $1.4 million worth of goods from Hard Island and the MacDonald’s Islands, despite the fact that the island lacked buildings or people. But there is a fishing industry. It is unknown what the imported product is. Over the past five years, imports have ranged between $15,000 and $325,000 a year.
In addition to the Heard Islands and the MacDonald Islands, other Australian “external territories” included on the tariff list were Cocos (Keyling) Island, Christmas Island and Norfolk Island.
Norfolk Island, home to 2,188 residents, faced a 29% tariff.
In 2023, Norfolk Island exported $655,000 worth of goods to the United States, with its main exports being leather shoes worth $413,000, according to the Observatory on its economic complexity data.
However, Norfolk Island manager George Plant disputed the data, telling the Guardian “there are no known exports from Norfolk Island to the United States, and there are no tariffs or known non-tax trade barriers on goods coming to Norfolk Island.”
When Trump announced the new tariffs on Wednesday, he denounced the former president for allowing other countries to “utilise” American workers and the economy. He said Americans “subsidize many countries, keep them and keep their businesses,” adding that his plan “finally brings America first.”
“The trade deficit is no longer just an economic problem. They are a national emergency,” Trump said.
He claims that tariffs will raise $6 trillion over a decade and will return the money to the US and taxpayers’ pockets.
However, some Republicans have warned that short-term pain could be an inevitable part of the process.
U.S. stock trading has all fallen after the Dow Jones, the S&P 500 and the Nasdaq after Trump’s announcement, but it appeared that the president would avoid the potential impact of his announcement, despite the 4pm announcement.
Australian Prime Minister Anthony Albanese said: “Norfolk Island has a 29% tariff. I’m not sure Norfolk Island is a trade competitor with the US giant economy, but it illustrates the fact that it is safe anywhere on the planet.”
In X’s post, he added: “Our government will always stand up to Australia. These are times of uncertainty, but all Australians can ensure this. They will withstand Australian jobs, Australian industry, Australian consumers, Australian values. These tariffs are not unexpected.
“Taxpayers have been fooled for over 50 years, but that’s not going to happen anymore,” Donald Trump said.
A 25% tariff on “all foreign-made cars” comes into effect on April 3rd. A 10% “baseline” tariff will come into effect on April 5th, and mutual tariffs will begin on April 9th.
(Source: NewSeek)