A tiny Australian outpost gets a steep Trump tariff despite few exports
SYDNEY, April 3 (Reuters) - For Richard Cottle, owner of a concrete-mixing business on Norfolk Island, there was only one explanation when U.S. President Donald Trump unveiled a hefty 29% tariff on the tiny territory about 600 miles off eastern Australia: "it was just a mistake".
Though the rugged volcanic island in the southern Pacific does ship a modest amount of Kentia palm seeds abroad, typically worth less than $1 million a year, mostly to Europe, news of the unusually steep tariff passed through its 2,188 residents on Thursday with a mixture of amusement and confusion.
"Norfolk Island is a little dot in the world," said Cottle by phone. "We don't export anything."
Norfolk Island was among dozens of tiny territories which appeared on the same list as China and the European Union as recipients of Trump's highly anticipated tariff regime, even though they do not have a real manufacturing or export industry.
Some, like the Heard and McDonald Islands in the Antarctic, which like Norfolk Island is overseen by Australia, did not even have human inhabitants. No matter - as of Thursday, they faced a 10% tariff for exports to the U.S.
Australian Prime Minister Anthony Albanese, on the campaign trail ahead of an election in a month, told the media his country did better than most with a tariff of 10% - half of what the EU was hit with and one-third of what China got - but he had no explanation for Norfolk Island.
"Last time I looked, Norfolk Island was a part of Australia," he told the Australian Broadcasting Corp. The separate, higher tariff "was somewhat unexpected and a bit strange", he added.
According to U.S. government data, the U.S. has recorded trade deficits with Norfolk Island for the past three years. The island exported $300,000 worth of goods to the U.S. in 2022, $700,000 in 2023 and $200,000 in 2024. Its imports from the U.S. stayed at $100,000 in those years.
Norfolk Island's imports from the U.S. peaked at $11.7 million in 2020, when no exports were recorded. The data did not specify what goods were traded.
Other Norfolk Island business owners who spoke with Reuters could think of no manufacturing industry on the island, and added that its main industry by far was tourism. One pest control business owner, who asked not to be named, said that although they did not export to the U.S., they imported some rodent bait from the U.S. via Australia.
"Products from Norfolk Island are going to have a 29% tariff? Well, there is no product, so it's not going to have an effect," said Gye Duncan, who owns a tax consultancy on the island.
"They probably don't even know where Norfolk Island is in the world. It's just probably an anomaly."
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