In a surprising development that underscores the Trump administration’s tough stance on trade loopholes, two remote Antarctic territories—Heard Island and McDonald Islands—have been included in a list of regions subject to a 10% U.S. tariff.
The islands, which are completely uninhabited and home only to penguins and seals, are technically Australian territories. They’re some of the most isolated places on Earth, accessible only by a grueling two-week sea voyage from Perth.
While critics, including Australian Prime Minister Anthony Albanese, mocked the move on the Antarctic islands as unnecessary—claiming “nowhere on Earth is safe”—Trump officials are defending the decision. Commerce Secretary Howard Lutnickexplained that the tariff is designed to plug potential trade loopholes, not punish penguins.
“Other nations have been known to reroute or mislabel shipments to exploit tariff gaps,” Lutnick said. “This is about protecting American workers from global gamesmanship.”
Indeed, World Bank data cited by The Guardian suggests that goods previously marked as coming from the islands—mostly “machinery and electrical” equipment—were likely mislabeled and originated elsewhere.
U.S. Agriculture Secretary Brooke Rollins further defended the move during an interview with CNN’s Jake Tapper. “We’re closing doors to shady trade practices. This administration is made up of serious, patriotic leaders doing what’s right for America.”
While Australia’s Trade Minister Don Farrell called the decision a “mistake” and joked that he “didn’t know what the penguins did to Trump,” the administration is clearly treating this as a strategic step in maintaining the integrity of U.S. trade policy.
In an era of complex global supply chains and slippery labels, the Trump administration’s approach signals a zero-tolerance policy for loopholes—no matter how remote.
