A series of errors in trade data have led to the imposition of incorrect tariffs on some of the world’s most remote territories, including Australia’s Norfolk Island and the uninhabited Heard Island and McDonald Islands, according to recent reports. These errors have resulted in hefty trade levies, despite little to no trade activity between these territories and the United States.
Norfolk Island, located over 1,600 kilometers north-east of Sydney and home to just over 2,000 residents, was recently hit with a 29% tariff on its goods — 19 percentage points higher than the tariff on mainland Australia. However, George Plant, Norfolk Island’s administrator, confirmed that “there are no known exports from Norfolk Island to the United States.” Despite this, U.S. trade data falsely indicated that the island exported over $650,000 worth of goods to the U.S. in 2023, including $413,000 worth of leather footwear. The problem lies in the fact that the only shoe shop on the island, Frank’s Shoes, serves only local customers and does not engage in U.S. exports.
Further investigation revealed that several shipments from well-known brands were mistakenly recorded as originating from Norfolk Island. For example, two shipments of Timberland boots worth more than $315,000 were sent from the Bahamas to Miami in December 2023 but were inaccurately listed as coming from Norfolk Island. The address was also misreported, listing “Stratham, Norfolk Island” instead of Stratham, New Hampshire.
Other errors included mislabeling shipments from U.K.-based companies, such as OASE, an aquarium systems firm, and Novum Structures, a structural steel company. These products were incorrectly recorded as originating from Norfolk Island, when they were actually sent from the U.K.
The U.S. Census Bureau, which compiles trade data, acknowledged that misclassified shipments can distort trade statistics, influencing policy decisions such as tariff rates. In this case, the erroneous trade data led to a 29% tariff on Norfolk Island.
Heard Island and McDonald Islands, another remote Australian territory with no permanent population, was also included on the tariff list. The territory, located near Antarctica, was wrongly assigned a 10% tariff, despite having no known exports to the U.S. Trade records showed that goods from Europe were mistakenly listed as originating from Heard Island. One such shipment, for parts used in a recycling plant, was sent from Austria but was incorrectly labeled as originating from “Vienna, Heard Island and McDonald Islands.”
Australia’s Trade Minister, Don Farrell, called the tariff on Norfolk Island “clearly a mistake” and said it would be addressed with the U.S. government. He also criticized the speed at which the policy was implemented, stating that it disrupted a trade system that had been in place since World War II.
Experts suggest that this situation highlights the risks of relying on automated trade data without sufficient oversight. Jared Mondschein, director of research at the United States Studies Centre, emphasized that such errors can occur when there is insufficient interagency coordination.
The tariff mistakes are not limited to Norfolk Island and Heard Island. Other isolated territories, such as Jan Mayen, the Svalbard archipelago, Tokelau, and the British Indian Ocean Territory, also appeared on the U.S. tariff list, despite having minimal or no trade with the U.S.
While the U.S. government has not yet issued an official statement on the matter, the situation underscores the potential diplomatic and economic consequences of faulty trade reporting. What was intended as a measure of protectionism may have inadvertently led to serious errors in international trade relations.
