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Summarize
Trump imposes tariffs on Antarctic islands, where only penguins live 
The islands are uninhabited

Trump imposes tariffs on Antarctic islands, where only penguins live 

Apr 03, 2025
02:23 pm

What's the story

In a rare decision, United States President Donald Trump has placed a 10% tariff on goods from Heard Island and McDonald Islands - two remote volcanic islands near Antarctica. An external territory of Australia, these are known for their glaciers and penguin population. They are one of the most isolated places on earth, accessible only by a two-week boat trip from Perth in Western Australia.

Reaction

Australian PM reacts to Trump's tariff announcement

Though uninhabited for almost a decade, Heard and McDonald Islands made it to a list published by the White House of "countries" that would be subjected to new trade tariffs. Australian PM Anthony Albanese commented on the development, stating, "Nowhere on earth is safe." Heard and McDonald Islands are some of the several "external territories" of Australia that have been listed separately in the tariff list.

Tariff details

Norfolk Island faces higher tariff than mainland Australia

These territories are parts of Australia but are not self-governing and have a unique relationship with the federal government. Other external territories mentioned include Cocos (Keeling) Islands, Christmas Island, and Norfolk Island, which was hit with a tariff of 29%—19 percentage points higher than the rest of Australia.

Disagreement

Norfolk Island administrator disputes export data

According to Observatory of Economic Complexity data, Norfolk Island, located 1,600km northeast of Sydney, exported $655,000 (A$1.04 million) worth of goods to the US in 2023. However, George Plant, Norfolk Island's administrator, disputed the figures, saying, "There are no known exports from Norfolk Island to the United States and no tariffs or known non-tariff trade barriers on goods coming to Norfolk Island." The island has a population of just 2,188.

Export data

US imported $1.4 million worth of products from Heard Islands

Although Heard Island and McDonald Islands have no human inhabitants, the territory does have a fishery. Per World Bank data, the US imported products worth $1.4 million (A$2.23 million) from the islands in 2022, mostly machinery and electrical imports. In the preceding five years, imports from the islands varied between $15,000 (A$24,000) and $325,000 (A$518,000) annually. The exact nature of such goods is unclear at this time.