Trump’s April 2, 2025 tariff schedule listed Heard Island and McDonald Islands at a 10% baseline rate. The tariff applied to goods imported into the United States—not to penguins or the islands themselves. The original duties ended in February 2026, so the 10% figure is historical, not a description of current policy.
What did the 10% tariff apply to?
The White House’s April 2, 2025 reciprocal-tariff schedule included Heard Island and McDonald Islands (HIMI) at a 10% baseline rate. It was a duty on covered goods imported into the United States, not a tax charged to the territory, its wildlife or its nonexistent permanent human population. The White House’s 2025 order set out the tariff schedule; contemporaneous reporting identified the territory’s listed rate as 10%.
That distinction matters: a place appearing in a tariff schedule does not mean penguins were taxed, nor does it establish that goods from the islands were actually being imported or assessed at that rate.
Why was a remote Australian territory on the list?
Axios reported that a White House official said HIMI was included because it is Australian territory. Commerce Secretary Howard Lutnick offered a broader administrative rationale in an interview with CBS: the administration wanted to leave no countries off its list, arguing that excluded places could become routes for goods to avoid duties. On Face the Nation on April 6, 2025, Lutnick said, “there are no countries left off.” CBS’s interview transcript gives the statement in context.
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That was the administration’s stated rationale, not evidence that Heard or McDonald Islands had been used to route goods around tariffs. The available sources do not establish such transshipment.
What are Heard Island and McDonald Islands?
HIMI is a remote Australian external territory in the Indian Ocean sector of the Southern Ocean. Its volcanic islands support glaciers, penguins, seals and other birds, and have no permanent human population. Australia’s heritage department describes the ecosystem as unusually intact, with no known species introduced directly by humans. The territory was inscribed on the World Heritage List in 1997. Australia’s heritage page was updated on August 17, 2026.
- About 70% of Heard Island is under permanent snow and ice.
- Big Ben, Heard Island’s active volcano, rises 2,745 metres.
- McDonald Island lies 43.5 kilometres west of Heard Island and has also experienced volcanic activity and growth.
- The HIMI Marine Reserve covers 65,000 square kilometres.
The figures above are from the Australian Department of Climate Change, Energy, the Environment and Water’s August 17, 2026 page update. Australia describes HIMI as among the few sub-Antarctic island groups that remain volcanically active.
Is the 10% tariff still in effect?
No. On February 20, 2026, the White House ordered that additional duties imposed under specified International Emergency Economic Powers Act (IEEPA) orders—including the April 2, 2025 reciprocal-tariff order—“shall no longer be in effect” and should no longer be collected as soon as practicable. The order did not end every U.S. tariff: it said other duties, including Section 232 and Section 301 duties, were unaffected. The February 20, 2026 order defines the change.
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What tariff guidance applies to Australian goods now?
As of October 8, 2026, Australia’s Department of Foreign Affairs and Trade (DFAT) reported that a U.S. Section 301 measure effective July 24, 2026 generally applied a 12.5% tariff to imports from Australia, subject to exemptions in the relevant Federal Register notice. DFAT also identifies separate, sector-specific Section 232 tariffs for some products. DFAT’s U.S. tariff guidance advises exporters to check updated U.S. notices and seek independent advice for trade decisions.
This country-level guidance does not establish the customs rate or origin classification for goods specifically originating in HIMI. The 12.5% figure should therefore not be treated as a definitive tariff ruling for the territory, just as the 2025 schedule’s 10% entry should not be described as current.
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