US defends tariffs on remote island of penguins and seals

The US Commerce Secretary has defended tariffs on uninhabited islands. These islands are home only to penguins and seals.

The tariffs target Heard and McDonald Islands. They aim to close "ridiculous loopholes." This will stop other countries from shipping through the islands to reach the US, Howard Lutnick told CBS.

Australian authorities were surprised by the tariffs last week. The islands are 4,000 km (2,485 mi) from Australia. Trade Minister Don Farrell called the tariffs "clearly a mistake." He suggested there was a "rushed process."

When asked about including these islands in Trump's tariff list, Lutnick responded. He said leaving anything off the list allows countries to exploit it. "The President knows that," he added. "He's tired of it, and he's going to fix that."

Lutnick's interview was part of several given by US officials. They aimed to defend the new tariffs after stock indexes fell over 5%. This marked the worst week for US stocks since 2020.

Transshipment is common in global trade. It involves shipping products through one port to another. However, Pew Charitable Trusts warns this can help bad actors manipulate data.

They estimate hundreds of millions of dollars in tuna are illegally moved each year in the Pacific.

It's unclear how much is imported from Heard and McDonald Islands to the US. World Bank export data shows small amounts exported over recent years.

In 2022, imports peaked at US$1.4 million (A$2.3 million; £1.1 million). Most items were unnamed "machinery and electrical" products.

Trump's tariff list also includes the British Indian Ocean territory. This area is occupied solely by military personnel and requires a permit for visits. In 2022, it exported US$414,350 to the US according to World Bank data.