US commerce secretary, Lutnick defends tariffs on remote island with nothing but penguins and seals
In one of the most bizarre moves of his administration, US President Donald Trump has imposed tariffs on the remote and uninhabited Heard and McDonald islands, home to nothing but penguins and seals. Yes, you read that right. These two islands, located 4,000 kilometers from Australia, are now on the tariff list, and the US Commerce Secretary, Howard Lutnick, is defending the decision as a necessary step to close what he calls “ridiculous loopholes.”
Lutnick explained to CBS that if the islands were left off the list, other countries would exploit them as a backdoor to bypass US regulations. “The President knows that, he’s tired of it, and he’s going to fix that,” Lutnick said, sounding like a character in a strange geopolitical thriller. Meanwhile, Australia was left stunned, with Trade Minister Don Farrell calling the move a “mistake” and suggesting that it was rushed.
This surreal decision comes amidst a sharp market plunge, with the US stock market experiencing its worst week since 2020. It seems the “transshipment” trade practice, where goods are sent through third-party ports to obscure the route, is at the heart of this. While the islands have only ever exported small amounts of goods (mostly mysterious “machinery and electrical” products), the US is determined to crack down on what it sees as shady shipping practices—even if it means slapping tariffs on islands that barely anyone knows exist.
And if you thought this couldn’t get weirder, the British Indian Ocean territory—another remote, military-only area—is also on the list. Talk about a strange trade war! The President’s efforts to “fix” the system seem to be taking the global economy in odd and unexpected directions. Stay tuned, because this one just might be the weirdest tariff battle yet!
