Donald Trump Puts Tariffs on Islands Inhabited Only by Penguins - Newsweek
By: Martha McHardy (Newsweek)
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Martha McHardy is a U.S. News reporter based in London, U.K. Her focus is on polling and California politics. She has covered U.S. news extensively, including the 2024 election and pro-Palestine protests at U.S. colleges. Martha joined Newsweek in 2024 from The Independent and had previously freelanced at The Sun , The Mirror and MyLondon . She is a graduate of Durham University and did her NCTJ at News Associates. You can get in touch with Martha by emailing m.mchardy@newsweek.com. Languages: English.
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John Feng is Newsweek's contributing editor for Asia based in Taichung, Taiwan. His focus is on East Asian politics. He has covered foreign policy and defense matters, especially in relation to U.S.-China ties and cross-strait relations between China and Taiwan. John joined Newsweek in 2020 after reporting in Central Europe and the United Kingdom. He is a graduate of National Chengchi University in Taipei and SOAS, University of London. Languages: English and Chinese. You can get in touch with John by emailing j.feng@newsweek.com
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President Donald Trump has announced new tariffs on a collection of remote islands—despite the fact that their only residents are penguins.
Why It Matters
The tariffs are part of a new plan announced by Trump yesterday on what he dubbed "Liberation Day." The plan included a universal 10 percent tariff on all imports from countries and higher tariffs on dozens of others.
The administration expects the new rates to remain in place until the U.S. narrows a $1.2 trillion trade imbalance recorded last year. But the extensive list of tariffs also threatens to upend the U.S. economy, as many—but not all—economists say they amount to taxes on American companies that will be passed down to consumers.
Split screen of Donald Trump and a penguin.Split screen of Donald Trump and a penguin.AP
What To Know
Trump has announced tariffs on the uninhabited volcanic Heard and McDonald Islands, a remote territory inhabited only by penguins, seals, and seabirds.
The islands were included because they are Australian territory, Axios reported, citing a White House official. An informational guide to the islands on an Australian government website describes Heard and McDonald Islands as "one of the wildest and remotest places on Earth."
The islands are accessible only via a two-week boat voyage from Perth on Australia's west coast, per the Australian Antarctic Program. And, according to U.K. newspaper The Guardian , they have not been visited by a human in nearly 10 years.
The White House says that the islands currently impose a 10 percent "Tariff to the USA," which includes "currency manipulation and trade barriers." In retaliation, the United States has implemented "discounted reciprocal tariffs" at the same rate.
The decision prompted a reaction from Australian Prime Minister Anthony Albanese, who said: "Nowhere on Earth is safe."
World Bank data shows that, in 2022, the U.S. imported $1.4 million worth of goods from Heard Island and McDonald Islands—mostly classified as "machinery and electrical" products, despite the fact that the island has no buildings or people. However, it does have a fishery. It is unclear what the imported products were. In the previous five years, imports ranged from $15,000 to $325,000 annually.
In addition to Heard and McDonald Islands, other Australian "external territories" included in the tariff list were the Cocos (Keeling) Islands, Christmas Island, and Norfolk Island.
Norfolk Island, home to 2,188 residents, faced a 29 percent tariff—19 percentage points higher than mainland Australia.
In 2023, Norfolk Island exported $655,000 worth of goods to the U.S., with its main export being $413,000 worth of leather footwear, according to Observatory of Economic Complexity data.
But George Plant, the administrator of Norfolk Island, disputed the data, telling The Guardian: "There are no known exports from Norfolk Island to the United States and no tariffs or known nontariff trade barriers on goods coming to Norfolk Island."
This photo captured on January 10, 2024, by the European Space Agency's Sentinel-2 satellites shows Australia's Heard Island in the Antarctic.This photo captured on January 10, 2024, by the European Space Agency's Sentinel-2 satellites shows Australia's Heard Island in the Antarctic.European Space Agency
As Trump announced new tariffs on Wednesday, he blamed previous presidents for allowing other countries to "take advantage" of the American worker and economy. He said Americans "subsidize a lot of countries and keep them going and keep them in business" and added that his plan would be "finally putting America first."
"Trade deficits are no longer merely an economic problem. They are a national emergency," Trump said.
He has claimed that the tariffs will raise $6 trillion over a 10-year period, returning money to the U.S. and the pockets of taxpayers.
But some Republicans have warned that short-term pain may be an inevitable part of the process.
After-hours trading for U.S. stocks saw the Dow Jones, S&P 500 and Nasdaq all drop following Trump's announcement, even though the president scheduled his announcement for 4 p.m. ET seemingly to avoid the potential impact of his announcement.
What People Are Saying
Australian Prime Minister Anthony Albanese said: "Norfolk Island has got a 29 percent tariff. I'm not quite sure that Norfolk Island, with respect to it, is a trade competitor with the giant economy of the United States, but that just shows and exemplifies the fact that nowhere on Earth is safe from this."
In a post on X, he added: "Our Government will always stand up for Australia. These are uncertain times—but all Australians can be certain of this: we will always stand up for Australian jobs, Australian industry, Australian consumers and Australian values. These tariffs are not unexpected, but they are unwarranted. Many other countries will be hit harder by today's decision than Australia—and no nation is better prepared than Australia."
Donald Trump said: "Taxpayers have been ripped off for more than 50 years. But it is not going to happen anymore."
What Happens Next
A 25 percent tariff on "all foreign-made automobiles" will take effect on April 3. The 10 percent "baseline" tariffs will take effect on April 5 and the reciprocal tariffs will kick in on April 9.
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Gotta keep an eye on them sneaky penguins and seals
trumpski, the dementia POTUS ...
Morning...fair dinkum..we killed ourselves laughing when we saw this...how dumb arse can you get..
So if the US imported $1.4 million worth of goods from these two islands mostly machinery and electrical goods where are they?
The seals and penguins must be highly intelligent and if I was the US government I would certainly be looking at installing them into government..
From what we are seeing it would be a drastic improvement..
It's off to work we go, for the good old US you know..
Does Australia secretly train mutant penguins to make machinery???
That's diabolic!
Morning...no we actually train them to make our secret weapon... Vegemite..🤣
Honestly you couldn't make this crap up if you tried...how people aren't embarrassed by these stupid and inaccurate blunders by the US government i will never know..
And he picked on Norfolk island as well... they do not trade leather footwear to the US...I was there 12 months ago, it has 2,000 people and you can drive around it in 20 minutes..
There are no industries there they are basically self reliant and certainly have nothing to trade..
I barge comes once a fortnight from Australia and it's all food stuffs, cars and everything you can think of..
Norfolk island doesn't export anything and certainly not to the USA...🙄 To get a car from Australia to Norfolk costs $15,000 so there certainly isn't anything coming to the US any time soon..
This is how everything comes on and off the island..there are no piers for unloading..
Diabolic!
Penguins and seals are a major source of Fentanyl apparently.
I knew there was something about them beasties!
Someone in his administration who put that plan and chart together is dumber than he is or really, really hates him. Just laughable if it wasn't painful for so many people.
I hope it's someone who hates him and wants him humiliated beyond all hope
And that is a very low chart-bar to get under...
This is my fundamental problem with this action, and most of the actions taken by this administration. All of the people involved in this shit are incompetent. It’s like you gave a baseball bat to a drunk chimpanzee and sent him to clean your kitchen.
It sounds like the perfect place for Trump, Musk, Vance and rhe rest of the ghouls to relocate.
Morning... absolutely not...we don't want garbage contaminating our pristine Islands...or anywhere near our mainland....
Guantanamo Bay sounds more their standing...they would fit right in there...
OK... So someone screwed up and put tariffs on uninhibited islands. Fortunately, like all competent organizations that deal with the media, the Trump Administration has people who proofread everything before it goes public.
Right? I mean... No one could be so stupid as to release media content that hasn't been double-checked. Right?
No one could possibly be that stupid.
The euro was introduced in 1999 at $1.18. When we bought our condo in Yuma, fifteen years ago, it was at $1.30. The highest I've ever seen was $1.60.
Since introduction:
How fast can these bozos tank the world's richest economy?
They will accept that as a challenge...