Trump sets 10% tariffs on external territories

President Donald Trump’s tariff regime did in fact sweep in some external territories, including uninhabited ones, under the administration’s reciprocal-tariff action issued on April 2, 2025. The legal vehicle was Executive Order 14257, which invoked the International Emergency Economic Powers Act and declared a national emergency tied to large and persistent U.S. goods trade deficits. The White House annex to that order set country-by-country “adjusted” reciprocal rates, while a separate baseline 10% tariff applied more broadly. (whitehouse.gov 1) (whitehouse.gov 2) The White House’s tariff annex and subsequent reporting showed that Heard Island and McDonald Islands, an Australian external territory with no permanent population, was included at a 10% rate. (whitehouse.gov) That detail drew attention because the islands are remote and uninhabited, but they still appeared on the administration’s tariff list. Reuters reported at the time that other Australian outposts, including Norfolk Island, were also caught up in the rollout. ### How did an uninhabited territory end up on a U.S. tariff list? Executive Order 14257 was written broadly on April 2, 2025 to cover U.S. trading partners through a schedule of reciprocal tariff rates and a general baseline tariff framework. The order itself did not carve out territories simply because they were sparsely populated or uninhabited. Instead, the administration used tariff schedules tied to named foreign jurisdictions in the Harmonized Tariff Schedule process. (whitehouse.gov) Heard Island and McDonald Islands appeared in the White House annex as one of those jurisdictions subject to the 10% rate. Axios and Reuters both identified the territory as uninhabited, underscoring why the listing became a point of public attention. (whitehouse.gov) ### Did this mean the islands suddenly had a major trade relationship with the United States? Australian government statistical material shows these territories sit awkwardly in trade data. The Australian Bureau of Statistics says goods exported and imported by Heard Island and McDonald Islands and several other external territories are excluded from Australia’s international merchandise trade statistics because of jurisdictional and measurement issues. Reuters reported in April 2025 that Australian officials and business people were puzzled by the inclusion of remote territories with little or no export industry. (whitehouse.gov) That did not stop the U.S. tariff framework from applying once a place was named in the schedule. (whitehouse.gov) ### Was the 10% rate new if many goods already entered at low duty? USTR says the United States has a trade-weighted average import tariff rate of 2.0% on industrial goods and that about half of industrial goods imports enter duty free. That means a flat 10% tariff can represent a meaningful increase from the prior treatment of many goods, even before product-specific duties are added. Australia’s Department of Foreign Affairs and Trade says the United States imposed a 10% baseline tariff on most imported goods effective April 9, 2025, and that most goods originating in Australia are subject to that tariff unless a higher rate or exemption applies. (abs.gov.au) For external territories tied to Australia but separately listed in U.S. tariff schedules, the practical result was that baseline treatment extended to places that previously drew little notice in trade policy. (gcaptain.com) ### Did later White House actions cancel these IEEPA tariffs? A White House order dated February 20, 2026 said additional ad valorem duties imposed under several IEEPA actions, including Executive Order 14257, “shall no longer be in effect” and should no longer be collected as soon as practicable. CBP separately said it was aware of a Supreme Court ruling on IEEPA and was prepared to implement current and forthcoming executive actions. (ustr.gov) That means any explainer about the external-territory tariffs needs to distinguish between the original April 2025 action and the later changes in February 2026. The clearest official places to check the current status are the White House presidential actions page, CBP tariff guidance, and DFAT’s running update on U.S. tariffs affecting Australian goods. (dfat.gov.au) (whitehouse.gov)