US President Donald Trump’s plan to instil tariffs has caused an uproar and a swarm of trade talks across more than 50 nations - but two islands impacted by the US’s new economic policy have been silent.
Heard and McDonald Islands, a territory which sits 4,000km southwest of Australia, have yet to voice any complaints despite now being subjected to a 10% tariff - possibly as only penguins and other wildlife inhabit the islands.
With a $6 trillion drop in value in the US stock market this week, according to Reuters, American citizens can be expected to be hit harder by the tariffs than the penguin inhabitants of Head and McDonald Island. JPMorgan economists estimated the tariffs will result in full-year US gross domestic product decline by 0.3%, down from an earlier estimate of 1.3% growth, and that the unemployment rate will climb to 5.3% from 4.2% now.
While many have perceived the tariffs on penguin-populated islands as an oversight by the Trump administration, Commerce Secretary Howard Lutnick told CBS News' 'Face the Nation' that a comprehensive approach was needed so that small nations could not be used by larger countries to circumvent the tariffs.
"Basically (Trump) said, 'I can't let any part of the world be a place where China or other countries can ship through them,'" Lutnick said.
Australian trade minister Don Farrell was less convinced, telling the Australian Broadcasting Corporation that the tariffs were "clearly a mistake".
"Poor old penguins, I don't know what they did to Trump, but, look, I think it's an indication, to be honest with you, that this was a rushed process."
While the Trump administration may have worked to ensure that no small nation would be untouched by the changing economic policy, NBC News noted that Russia was one of the few countries untouched by the charges.
“Donald Trump slapped tariffs on penguins and not on Putin,” Senator Chuck Schumer posted Friday on X/Twitter.
Donald Trump slapped tariffs on penguins and not on Putin.
— Chuck Schumer (@SenSchumer) April 3, 2025
Tariff dealmaking
US customs agents began collecting Trump's unilateral 10% tariff on all imports from many countries on Saturday. Higher "reciprocal" tariff rates of 11% to 50% on individual countries are due to take effect on Wednesday at 12:01 a.m. EDT (4:01 a.m. GMT).
Some nations have already signaled a willingness to engage with the US to avoid the duties.
Prime Minister Benjamin Netanyahu said he would seek a reprieve from a 17% tariff on the country's goods during a planned meeting with Trump on Monday.
Taiwan's President Lai Ching-te on Sunday offered zero tariffs as the basis for talks with the US, pledging to remove trade barriers and saying Taiwanese companies will raise their US investments.
An Indian government official told Reuters the country does not plan to retaliate against a 26% tariff and said talks were under way with the US over a possible deal.
In Italy, Prime Minister Giorgia Meloni - a Trump ally - pledged on Sunday to shield businesses that suffered damage from a planned 20% tariff on goods from the European Union.
Italian wine producers and US importers at a wine fair in Verona on Sunday said business had already slowed and feared more lasting damage.