In a move that’s raised more eyebrows than actual exports, the U.S. has imposed tariffs on Heard and McDonald Islands.
These remote, uninhabited Australian territories are known more for icy winds than international commerce.
Commerce Secretary Howard Lutnick says it’s about plugging loopholes.
“If you leave anything off the list, countries will go through them to reach us,” he told CBS.
What’s The Logic?
Even a rock in the Southern Ocean could become a backdoor to dodge U.S. trade rules.
“The President knows that, he’s tired of it, and he’s going to fix that.”
Australia didn’t get the memo. Trade Minister Don Farrell called the move a “clear mistake,” chalking it up to a hasty decision.
After all, the islands only shipped around $1.4 million in goods to the U.S. in 2022, mostly mysterious “machinery.”
Critics say this is overkill. But officials argue every gap—no matter how icy or penguin-filled—needs sealing.
Tariffs on territories without towns?
Welcome to modern trade, where even a seal colony isn’t safe from geopolitics.
