In fresh days, the planet economy has been amazed by the decision of the Donald Trump Administration, which introduced 10% tariffs on goods from any of the most inaccessible places on Earth – the Heard and McDonald Islands. These uninhabited territories of Australia, located close Antarctica, are known for volcanic activity, glaciers, and penguin colonies.
In consequence to this decision, Australia's Prime Minister, Anthony Albanese, did not hide the irony: "No 1 on Earth is safe," he said. Heard and McDonald Islands are not the only Australian external territories to be targeted. another territories specified as Norfolk Island, Cocos Islands and Christmas Island have besides been covered by fresh tariffs.
Special emotion was aroused by a 29 percent work on Norfolk Island products – 19 percent points higher than for the remainder of Australia. Norfolk, located 1,600 km from Sydney, has a population of little than 2.2 thousand. Data suggests that it exports mainly leather footwear to the US worth over $650,000 a year. However, the island administrator, George Plant, powerfully denies this: “There are no known exports from Norfolk Island to the United States and no customs or non-tariff barriers to goods arriving on the island.”
Even more amazing is the data on the Heard and McDonald Islands. Despite the deficiency of inhabitants and infrastructure, according to the planet Bank, the US was to import goods worth 1.4 million USD in 2022 – mainly machines and electrical equipment. What are these products and how they got from uninhabited islands to America? I don't know. In erstwhile years imports ranged from $15,000 to $325,000 a year.
The situation is unusual adequate that the Australian Ministry and the Antarctic Unit were asked to comment. Economists and analysts are confused due to the fact that there are no logical explanations why the Donald Trump Administration decided to impose duties on goods from specified distant and different places. The trade war between the US and Australia could have serious consequences for the planet economy.
According to data collected by the Organisation for economical Cooperation and improvement (OECD), the trade war may lead to a decline in global trade, which in turn could have a negative impact on growth and employment. The Australian Prime Minister urged the Donald Trump Administration to talk and find a solution that would be beneficial to both parties.
Meanwhile, the Australian manufacture is afraid about the consequences of fresh tarifs. Norfolk Island, whose economy is mainly based on agriculture and tourism, may lose crucial export revenue. The island administrator, George Plant, calls for a solution that will let the island to last and develop.
The trade war between the US and Australia is just 1 of the many conflicts that affect the global economy. global cooperation and knowing are essential to solve these problems and make a better future for all. The planet needs a peaceful and constructive relation between states and not a trade war that can have dangerous consequences for the economy and society.
More here:
Trade War: How Donald Trump's Administration amazed the World
