A cluster of desolate, ice-covered volcanic islands near Antarctica, inhabited solely by penguins, has unexpectedly become entangled in Donald Trump’s trade policies. The US president has introduced a 10% tariff on goods from these territories, despite their lack of human settlement.
Heard Island and McDonald Islands, classified as an external territory of Australia, rank among the most remote locations on the planet. Reaching them requires a two-week sea journey from Perth, Australia, and there is no evidence of any human presence for nearly a decade.
Nevertheless, these islands appeared on a White House-issued list of regions subjected to newly imposed trade tariffs. The territory hosts a fishery but lacks any infrastructure or permanent residents. Australian Prime Minister Anthony Albanese remarked that no place on earth could be considered beyond the reach of such measures.
Albanese noted that Norfolk Island had been assigned a 29% tariff and questioned whether such a small economy could be considered a significant trade rival to the United States. He suggested that this illustrated how trade restrictions were being applied indiscriminately.
Myanmar, which has been severely affected by conflict and a recent earthquake, along with multiple African countries, are among those facing the steepest tariffs. Myanmar, still reeling from a powerful earthquake and prolonged internal conflict since the 2021 military coup, faces a 44% rate.
Analysts have suggested that Trump’s strategy appears to target nations with significant Chinese investment, regardless of their individual economic or political circumstances.
The tariffs come at a time when several South-east Asian countries are already struggling with reduced USAid funding, which has provided disaster relief and supported democracy movements in regions facing authoritarian rule.
Cambodia, where nearly 18% of the population lives in poverty, is the most severely affected in the region, facing a 49% tariff. Close behind is Laos, a landlocked country that suffered heavy bombing by the US during the Cold War, with a 48% tariff. Over 18% of its people live below the poverty line.
Vietnam has been assigned a 46% tariff, while Indonesia, the largest economy in the region, has been subjected to a 32% tariff; Thailand, the second-largest, must contend with a 36% rate.
China, a major US competitor in global trade, has been hit with a 34% tariff in addition to the 20% duty it was already facing.
The real intention behind the tariffs imposed on South-east Asian nations is believed to undermine China’s influence. US officials appeared to believe that by targeting these economies, they could restrict Chinese investment in countries such as Cambodia, Laos, Myanmar, and Indonesia. Curbing exports from these nations might indirectly affect China’s trade flows and overall economic performance.
The tariffs might ultimately have significant adverse consequences for these smaller nations, as the investments they receive generate employment and export income.
Among the hardest-hit African nations, Lesotho has been subjected to a 50% tariff. The small, mountainous country, which Trump previously claimed was little known, has one of the highest HIV infection rates globally, with nearly a quarter of its adult population affected. Madagascar faces a 47% tariff, while Botswana has been assigned a 37% rate.
Elsewhere, Sri Lanka in South Asia is subject to a 44% tariff, while in Europe, Serbia faces a 37% duty.
Alongside these country-specific tariffs, Trump has introduced a universal 10% tariff on all imported goods, set to take effect on April 5. The targeted tariffs on selected nations will be enforced from 9 April.
