SYDNEY: Residents of Norfolk Island are struggling to comprehend U.S. President Donald Trump's recent decision to impose a 29% trade tariff on their tiny island territory. Located approximately 965 km off the eastern coast of Australia, Norfolk Island has a small population of just over 2,000 and is primarily known for its tourism industry. Despite its minuscule international trade activities, such as modest shipments of Kentia palm seeds to Europe, the hefty tariff left locals bewildered.

Richard Cottle, who runs a concrete-mixing business on the island, remarked, “it was just a mistake,” highlighting the widespread disbelief among the islanders regarding the tariff's rationale. The island has a long-standing trade deficit with the U.S., exporting a mere $300,000 worth of goods in 2022, $700,000 in 2023, and only $200,000 in 2024, according to U.S. government data.

Prime Minister Anthony Albanese addressed the media on the surprising decision, stating, “Norfolk Island was a part of Australia,” and called the tariff “somewhat unexpected and a bit strange.” He compared Australia's 10% tariff to those faced by other nations, emphasizing that the island's higher rate seemed unjustified. The island was placed on the same tariff list as major trading partners such as China and the European Union, a move that made little sense to many islanders.

Despite the clarity surrounding the tariff's impact, local business owners expressed uncertainty about the economic implications. Many noted the island's primary industry — tourism — and commented that there were virtually no products being manufactured or exported to the United States. One business owner observed, “Products from Norfolk Island will have a 29% tariff? There is no product, so it’s not going to have an effect.”

The baffling situation continued to attract attention, with residents speculating that the U.S. might not even recognize Norfolk Island's existence on the global stage. The absurdity of the situation provided a strange twist to the tariffs that are affecting territories, both large and small, across the globe, according to Channel News Asia.

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