In a move that has left both trade experts and penguins scratching their heads, Donald Trump’s administration has imposed a 10 per cent tariff on the Heard and McDonald Islands — two barren, icy territories of Australia located near Antarctica.
These islands are home to glaciers, seals, and penguins; but not a single human being. Yes, you read that right: Trump has officially declared a trade war on penguins.
For those unfamiliar with the Heard and McDonald Islands, they are among the most remote places on Earth. Accessible only by a two-week boat ride from Perth, these uninhabited volcanic islands have no infrastructure, no people, and certainly no thriving export industry. The closest thing to economic activity is a fishery in nearby waters. Yet somehow, they ended up on Trump’s list of territories facing new trade tariffs.
Australian Trade Minister Don Farrell summed up the absurdity of the situation when asked about it by the ABC: “Poor old penguins, I don’t know what they did to Mr Trump.”
Farrell went on to describe the tariff as part of a “rushed process” riddled with mistakes.
“It’s clearly a mistake,” he added.
Prime Minister Anthony Albanese couldn’t resist poking fun at the bizarre situation, saying on Thursday: “Nowhere on Earth is safe,” per The Guardian.
X users quickly piled on, with one quipping, “Those Penguins, they’re ripping us off, it’s like you wouldn’t believe, sleepy Joe, he just let it happen!”
Enjoy a few more takes on the matter:
How were Trump’s tariffs calculated?
So how did we get here? Trump’s tariffs are based on a formula that calculates levies using trade deficits as a percentage of exports. While this might sound logical in theory, it leads to some bizarre outcomes in practice — like slapping high tariffs on countries and territories with minimal trade activity. Heard and McDonald Islands ended up with a 10 per cent tariff because of their minuscule trade figures (mostly machinery and electrical goods).
The formula has drawn widespread criticism for its lack of nuance. Economists have called the tariffs “nonsense numbers that aren’t material”, per Reuters, pointing out that it disproportionately affects smaller economies and territories with limited trade relationships. Madagascar, for example, faces a crippling 47 per cent tariff despite being one of the world’s poorest nations.
Australia as a whole wasn’t spared from Trump’s trade crackdown. The country faces a baseline 10 per cent tariff on its exports to the US, including key industries like beef and wine. While this is lower than the 20 per cent levied against the European Union or the 25 per cent imposed on Chinese goods, it still poses challenges for Australian exporters. Prime Minister Albanese described the tariffs as “unwarranted” and hinted at potential legal action under existing trade agreements.
You can find out more about how Trump’s tariffs can affect Australians HERE.
As for Heard and McDonald Islands? Unless penguins start manufacturing export goods overnight, they’ll likely remain untouched by Trump’s economic crusade — aside from becoming internet icons. One thing’s for sure: when it comes to Trump-era trade policies, logic is optional.
Lead image: Canva / Getty / X
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