Other remote territories hit by Trump’s new tariffs, causing surprise and confusion
SYDNEY (Reuters) – A string of remote, even uninhabited, territories have been caught in the crossfire of President Donald Trump’s sweeping tariffs, a move that has left many residents and local officials baffled.
In his latest trade policy announcement, Trump imposed unexpectedly high tariffs of up to 29% on goods from some little-known territories such as Norfolk Island and the Heard and McDonald Islands, which have virtually no real exports.
Richard Cottle, who runs a small concrete-mixing business on Norfolk Island, about 1,000 km (620 miles) from the Australian mainland, called it a clear mistake.
We’re just a tiny dot in the ocean, Cottle said. We export almost nothing.
In fact, Norfolk Island’s trade with the US has been extremely limited over the past three years – just $300,000 in 2022, rising to $700,000 in 2023 and falling to $200,000 in 2024, according to US government data. During the same period, the island imported about $100,000 worth of goods from the US each year.
Notably, the tariffs also apply to uninhabited territories such as the Heard and McDonald Islands in Antarctica, which are administered by the Australian government. Although there are no recorded exports from these islands, they were subject to a 10% tariff from April 5.
Australian Prime Minister Anthony Albanese, who is in the midst of his election campaign, was surprised by the decision. “The last time I checked, Norfolk Island was still an Australian territory,” he told ABC radio. “The separate tariffs for the island are strange and hard to explain.”
Miles Howe, a longtime resident of the island and former president of the local Chamber of Commerce, said Norfolk residents were mostly amused by the move. “I think everyone on the island is pretty amused by being put on the list as if we were some kind of exporting powerhouse,” he said.
A pest control business owner who spoke on condition of anonymity said they only import a few traps from the U.S. and have no intention of exporting anything. “There’s no product to be taxed,” they said.
Trump has yet to explain the specifics of the territories on the list. But the move continues to fuel debate about the accuracy and true purpose of the trade policies he has pursued during his re-election campaign.
Where should you invest next?
With market valuations sky-high in 2024, many investors are struggling to identify reasonable entry points. But ProPicks AI has identified a number of stocks that are being overlooked by the market and have the potential to grow exponentially.
This year alone, the AI system has picked nine stocks that have increased by more than 25%, with two stocks increasing by more than 150%. Despite the volatility in the market, investment models such as technology stocks, Dow stocks, or mid-cap stocks can still be ideal strategies to help you build a profitable portfolio.