In an inexplicable turn of events, the federal government has placed a 10% tariff on all imports from Heard Island and McDonald Islands. These islands, straddling the Southern Ocean around the Antarctic Peninsula, are desolate, rocky, uninhabited volcanic outcrops. These territories are largely covered in glaciers and host incredible wildlife, including penguins. Yet, astonishingly, they have not opened their doors to human visitors in almost ten years. The U.S. has implicitly taken a long-term strategic decision to add these remote islands to the tariff list. This shift is in an effort to control commerce, extending to even the furthest corners of the globe.
Heard Island and McDonald Islands, external territories of Australia, are notable for their remoteness and environmental preservation. To get to these islands, you need to take a two-week long boat journey. Begin your trip in Perth, the sun-kissed capital of Australia’s west coast. Far from being inhospitable, the islands continue to prove productive enough to produce their own trade. In 2022, the U.S. imported approximately $1.4 million worth of goods from them. The primary imports are “machinery and electrical” products.
The application of tariffs on such a sparsely populated territory has puzzled political leaders and economists alike. But as Albanese, the Prime Minister of Australia, said, the situation is ridiculous. He continued, “Norfolk Island has a 29% tariff on it. Now I’m not sure that Norfolk Island is a trade competitor with the huge economy of the United States, but that just demonstrates this fact that nowhere on earth is safe from this.
The trade data from Heard Island and McDonald Islands are rather mysterious. Over the last five years, yearly imports to the U.S. from these territories were quite volatile. They spanned from $15,000 to $325,000. Such an erratic pattern reflects the uncertain nature of trafficking from as far away and inaccessible as Afghánistan.
Heard Island and McDonald Islands are among the most remote locations on our planet. For one, they have no permanent human settlement, which as far ecological manmade environments go, makes them one of the most unique. The islands are best known for their stunning natural beauty and unique wildlife preserves, such as the habitat of the many species of penguins.