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Updated April 3rd 2025, 15:24 IST

Trump's Bizarre 10% Tariff For Island With Only Penguins and Seals

The decision to impose a 10 per cent tariff on the Heard and McDonald Islands has sparked widespread confusion. How will the Islands with no humans pay tax?

Reported by: Tanisha Rajput
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A Tariff on ‘No One’: Trump’s 10% Duty on Heard and McDonald Islands Explained
A Tariff on ‘No One’: Trump’s 10% Duty on Heard and McDonald Islands Explained | Image: Agencies

Washington DC: US President Donald Trump on Wednesday imposed a 10 per cent tariff on the Heard and McDonald Islands, a barren volcanic island located near Antarctica inhabited by Penguins and seals only.

During his announcement, describing it as part of his "Liberation Day" initiative, Trump said, “Our country has been looted, pillaged, raped, and plundered by nations near and far, both friend and foe alike.”

But how will the Islands with no humans pay tax?

Also read | Donald Trump's Tariffs: Will Indian Engineers In US Lose Jobs?

What Are the Heard and McDonald Islands?

The Heard and McDonald Islands, located in the Southern Ocean about 1,700 km from Antarctica and 4,100 km southwest of Perth, are an external territory of Australia.

According to UNESCO, the islands provide an "open window into the Earth," by providing opportunities to observe the glacial dynamics. Access to the islands is highly restricted, requiring a special permit and a long boat journey from Perth.

Do Humans Live on the Heard and McDonald Islands?

No, the Heard and McDonald Islands have no human population. The last recorded human visit to the islands was nearly a decade ago, and visits are extremely limited due to their remoteness and harsh environment.

People who wish to visit the islands must have a permit. As per the Australian Antarctic Program, landings in the region can only be done via "helicopter,  inflatable rubber boats (IRBs) or amphibious vehicles supported from a larger vessel.”

As of now, there have been two landings in the region only. First in 1971 and 1980.

Also read | Expected 10per cent, Received 26per cent Tariffs: 'Shock' Says Ajay Bagga; Lists 3 Sectors That May Be Hit

Why Did Trump Impose Tariffs on These Islands?

Despite the islands' lack of inhabitants, they were included in the White House's list of regions facing the new tariffs, likely because they are an external territory of Australia.

The Trump administration has not offered an official explanation for targeting the islands, but their status as part of Australian territory seems to be the primary reason behind this move.

'Nowhere on Earth is Safe': Australia’s Reaction to Trump's Tariffs

Responding to Donald Trump's tariffs, Prime Minister Albanese criticised the move, saying, “Nowhere on earth is safe.” However, he also highlighted Australia won't take any retaliatory actions.

"Norfolk Island has got a 29 per cent tariff. I’m not quite sure that Norfolk Island, with respect to it, is a trade competitor with the giant economy of the United States, but that just shows and exemplifies the fact that nowhere on earth is safe from this," he said.

Trump’s new tariffs are part of a broader strategy to address what he calls an economic emergency and to counter countries that run trade surpluses with the United States. Along with the 10 per cent tariff on the Heard and McDonald Islands, the President introduced a 26 per cent tariff on imports from India, 34 per cent on China, and 20 per cent on the European Union, among others. 
 

Published April 3rd 2025, 14:23 IST